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INTERNAL AUDIT
PREETIROLL NO-8
Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
INTERNAL AUDIT MISSION
• The mission of Internal Audit is to assist all levels of administration in the achievement of the College goals and objectives by striving to provide both quality customer service and a positive impact on the efficiency and effectiveness of administrative functions.
•• The Office achieves this impact by providing ongoing,
objective, and independent reviews of internal controls and independent appraisals (i.e. audits), analyses, and counsel related to the assessment of business risk.
SERVICE PROVIDED
General Audits• Financial• Compliance• Operational
Special Investigations
Consulting
AUDIT ACTIVITIES (SELECTED)
Determine the accuracy and validity of financial transactions
Evaluate the financial and operational procedures for adequacy and effectiveness of internal controls
Verify the existence of College assets and ensure that assets are adequately safeguarded against loss
Evaluate the adequacy related to information relied on during management’s decision-making
INTERNAL CONTROL COMPONENTS
Monitoring Control Environment Risk Assessment Control Activities Information & Communication
MONITORING (INTERNAL CONTROL COMPONENTS)Supervising
Observing
Testing
Reporting to Responsible Individuals
MONITORING ACTIVITIES INCLUDE
Evaluation of TrendsReviews of Outstanding EncumbrancesSurprise Cash and Asset CountsFollow-up on complaintsReview of Financial ReportsSpot Checking of transactions to ensure compliance
with policies and procedures
RISK ASSESSMENT
Is the identification and analysis of relevant risks associated with the achievement of objectivesIs an ongoing process that is a critical component of an effective internal control system
EXTERNAL RISK FACTORS INTERNAL RISK FACTORS
Changing student & community needs
New/changed legislation & regulations
Technological developments
Natural catastrophes
Competitive conditions
Economic changes
New Personnel Low Morale Competency & Integrity of
Personnel New or Revamped Information
Systems Size of Organization Complexity & Volatility of
Activities Geographical Dispersion of
Operations Changes in Management
Responsibilities
INTERNAL CONTROL RESPONSIBILITY- AUDITORInternal auditors are responsible for:• Examining the adequacy and effectiveness of the
College’s internal controls, • Making recommendations where control
improvements are needed• Contributing to the effectiveness of the control
environment
INTERNAL CONTROL AND INTERNAL AUDITING
Internal Auditing helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of …Risk management
Control
Governance Processes
BENEFITS OF INTERNAL AUDIT
• Pragmatic, business oriented advice• Local knowledge of policies, procedures,
culture and environment• Conduit to other resources
THANK YOU