介绍一下
Internal Audit Basic Principles
What is the Internal Audit?
The Internal Audit is a process that evaluates the effectiveness and efficiency of the internal control systems, compliance with legal and regulatory requirements and compliance with the management’s policies and procedures of an organization. It is the function of examining and evaluating an organizations financial and operating activities. This process also aims to reduce the risk of fraud, abuse, mismanagement and errors and to minimize loss or damage to the company’s assets.
What are Internal Audit Basic Principles?
Internal Audit Basic Principles encompasses five components that an organization should follow to ensure that its internal audit functions are effectively and efficiently conducted. These five components are:
1. Independence:
The internal audit function should be organizationally independent and have sufficient authority to enable it to conduct audits in an unbiased and objective way to ensure the reliability and accuracy of reports. The internal audit should have no direct involvement in the management of the business activities that are being audited.
2. Relevance:
The internal audit should be conducted with relevance to the activities and risks of the organization. It should provide assurance that the control systems, procedures and policies are designed to protect the assets, liabilities and other resources of the organization against misappropriation, losses or damage and to ensure that the activities are complied with legal and regulatory requirements.
3. Competence:
The internal audit must have sufficient resources and the necessary technical skills to competently carry out the internal audit. The internal audit staffs should also have the appropriate qualifications, experience, knowledge and training to conduct audit activities.
4. Authority:
The internal audit should have the appropriate levels of authority to be able to access records and other resources. The internal audit staff should have the authority to make recommendations and also to monitor the implementation of required changes.
5. Objectivity:
The internal audit should be conducted in an unbiased and ethical manner. The internal audit staff should be able to present the results of the audit in an objective manner without fear or favoritism.
Conclusion:
The internal audit function plays an important role in the overall process of control and governance of an organization. It provides assurance to the stakeholders that the controls are designed and implemented effectively and efficiently. The Internal Audit Basic Principles are essential for any organization to ensure that the internal audit is conducted in a professional manner and is able to provide reliable and accurate reports.
