Category: Internal audit effectiveness pdf

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: Internal auditing IA has become an indispensable control mechanism in both public and private organisations.

Yet very few academic studies have been conducted on the effectiveness of IA. The current exploratory study aims to build a conceptual understanding of the effectiveness of IA in organisations. Towards this end it develops a scale to measure the effectiveness of IA and a model of its determinants. View via Publisher. Alternate Sources. Save to Library. Create Alert. Launch Research Feed. Share This Paper.

Tables from this paper. Citations Publications citing this paper. Determinants of internal audit effectiveness in the public sector, case study in selected Ethiopian public sector offices Shewamene Hailemariam Business Factors affecting internal audit function effectivity internal auditor competence and objectivity, management support and organisation culture at local government N A Rindu Rika Gamayuni Economics Internal audit effectiveness in public sector organisations: a Rwandan multiple case study Enid Uwimana Business References Publications referenced by this paper.

Evaluating the effectiveness of internal audit departments W. Steve Albrecht Business Spraakman Internal auditing effectiveness: an expansion of present methods Mort Dittenhofer Economics LampeS.

Sutton Duncalf Economics Schneider Economics Related Papers. By clicking accept or continuing to use the site, you agree to the terms outlined in our Privacy PolicyTerms of Serviceand Dataset License.There are some interesting discussions on LinkedIn including this one and this one and elsewhere about the value of internal audit and even calculating a return on investment in internal audit.

As you might expect from me, I don't like the traditional measures or KPI that many use. I just don't see them as indicators of effectiveness. I believe that in order to establish how we measure the effectiveness of internal audit, you have to start with agreement among the head of the function CAE and his stakeholders primarily the audit committee on the role and the objectives of the activity. As explained in the IIA's definition of internal auditing, the role — and therefore the objective — of the activity should be as "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 auditing is effective if it provides the audit committee and executive management with the assurance they need, namely that they can rely on the organization's processes and systems to manage risks to the achievement of the organization's objectives. That means providing assurance on the risks that matter to the organization today, in a form and timeframe that is useful.

Additional value is provided through the role of internal audit as a change agent, making recommendations for improvement that are embraced and acted on by management. How do you put a value on assurance?

You don't worry about the quality of the water you drink at least where I live because you know that the company providing the water has to comply with strict regulations, and the water is tested frequently to ensure it is safe and to standards. How much would you then pay, as a board member or top executive, for assurance that the processes and systems that you rely on to run the business are working properly? Assurance that is so reliable that you don't even think about it?

It's hard to put a value on "peace of mind," but in my mind pun intended that is the greatest value an effective internal audit function can provide. I believe that the only way to determine whether internal audit is effective is to ask the stakeholders whether they are comfortable that they are receiving the assurance they need, when they need it, and in a useful form on the risks that matter to them and to the organization.

Only then do you start looking at additional value that is provided. For a moment, let's examine some traditional measures and discuss their value and relevance. The table below is for a hypothetical organization.

Empirical evidence of antecedents of internal audit effectiveness from Nigerian perspective

At first glance, this looks like an effective internal audit department. But, if that was as most are an annual audit plan then this may be an indication that they continued to remain glued to their plan even when risks changed.

They failed to audit what matters now; instead they blindly continued to audit what used to matter.One of the three areas to which internal auditing is targeted is effectiveness. Yet we do not often determine whether the internal auditing function is itself operating effectively. We must identify the basic objective of internal auditing, define the goals to be accomplished, establish measures relative to achieving those goals, and finally evaluate the overall internal auditing process.

We must separate the usual measures of output from the overall measures of outcome to determine the cost effectiveness and operational improvement aspects of the internal audit process. Dittenhofer, M. Please share your general feedback. You can start or join in a discussion here. Visit emeraldpublishing.

Abstract One of the three areas to which internal auditing is targeted is effectiveness. Please note you might not have access to this content. You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account. To rent this content from Deepdyve, please click the button.

Rent from Deepdyve. If you think you should have access to this content, click the button to contact our support team. Contact us. Share feedback. Join us on our journey Platform update page Visit emeraldpublishing.Create an AI-powered research feed to stay up to date with new papers like this posted to ArXiv. Skip to search form Skip to main content You are currently offline.

Some features of the site may not work correctly. The objective of this study is to present the empirical evidence of antecedents of internal audit effectiveness from the Nigerian perspective.

ISO Internal Quality Audit (IQA) Explained

Antecedents here constitute; risk management, effective internal control system, audit experience, cooperation between internal and external auditors and performance measurement. Save to Library. Create Alert. Launch Research Feed. Share This Paper. Tables from this paper. Citations Publications citing this paper.

Internal auditing effectiveness: an expansion of present methods

Sarea Business Factors determining internal audit effectiveness in Ethiopia commercial banks Awraris Temelket Business Factors influencing the effectiveness of internal audit on organizational performance Barzan Omar Ali Psychology The effect of internal auditor independence on effectiveness of government internal audit: group cohesiveness as an intervening variable case study at the regional inspectorates at java island Moh.

UbaidillahAri Kuncara Widagdo Business OkaroGrace O. OkaforIfeanyi O.

internal audit effectiveness pdf

NwannaIkponmwosa Michael Igbinovia Business References Publications referenced by this paper. Audit independence control systems : Effectiveness of internal audit in of tax auditors in Thailand : Roles of ethical risk management at public sector enterprises. Audit independence control systems: Effectiveness of internal audit. VijayakumarN. Nagaraja Internal Ussahawanitchakit, Effectiveness of UnegbuM.

Kida Amirkhanyan Economics Co - operation between internal and success. Gaballa Review of Business Research The federal deposit. FondH. You Iaira Boissevain Medicine Tijdschrift voor diergeneeskunde Related Papers.

By clicking accept or continuing to use the site, you agree to the terms outlined in our Privacy PolicyTerms of Serviceand Dataset License.Create an AI-powered research feed to stay up to date with new papers like this posted to ArXiv.

Skip to search form Skip to main content You are currently offline.

internal audit effectiveness pdf

Some features of the site may not work correctly. DOI: Internal auditing IA has become an indispensable control mechanism in both public and private organisations. Yet very few academic studies have been conducted on the effectiveness of IA. The current exploratory study aims to build a conceptual understanding of the effectiveness of IA in organisations.

Towards this end it develops a scale to measure the effectiveness of IA and a model of its determinants. View via Publisher. Alternate Sources. Save to Library. Create Alert. Launch Research Feed.

Share This Paper. Tables from this paper. Citations Publications citing this paper. Determinants of internal audit effectiveness in the public sector, case study in selected Ethiopian public sector offices Shewamene Hailemariam Business Factors affecting internal audit function effectivity internal auditor competence and objectivity, management support and organisation culture at local government N A Rindu Rika Gamayuni Economics Internal audit effectiveness in public sector organisations: a Rwandan multiple case study Enid Uwimana Business References Publications referenced by this paper.

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Evaluating the effectiveness of internal audit departments W. Steve Albrecht Business Spraakman Internal auditing effectiveness: an expansion of present methods Mort Dittenhofer Economics LampeS.

Sutton Duncalf Economics Schneider Economics Related Papers. By clicking accept or continuing to use the site, you agree to the terms outlined in our Privacy PolicyTerms of Serviceand Dataset License.Independent Audit conducts full External Quality Assessments, helping organisations make sure that their internal audit is having the required impact on the organisation and that the organisation is working in line with international standards and good practices.

internal audit effectiveness pdf

Our independent reviews are mainly based on interviews and audit walk-throughs, with reviews to get extra and wider stakeholder coverage. Our clients tell us that our business focus is a real differentiator.

The service uses in-depth effectiveness questionnaires in the form of externally-facilitated questionnaires or evaluation software. Questionnaires are designed to be used by an organisation as-is with cleverly structured questions designed to get to the root of any issue and identify how things might change for the better. The secure system allows questionnaires to be completed online on any device and from any location. Directors were comfortable discussing issues with both Richard and Catherine during their interviews.

The ideas for change that emerge from the review are sensible and practical. But they were also personal. We believe that they will help us learn and develop further. Communications with the review team were good and the review provided constructive suggestions for development. Learn how we help boards to become more effective and have a bigger impact on strategic performance. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website.

These cookies do not store any personal information. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies.

It is mandatory to procure user consent prior to running these cookies on your website. As all responses are anonymous, feedback tends to be more genuine and detailed. What our customers say. Contact Us.This training gives context to SOX requirements. This is meant to be easy to understand, especially for those with first time exposure to SOX I suggest you watch the video. The content below is the same as the video. This table of contents came directly out of Auditing Standard No.

Paragraph 39 talks about testing the controls that are important. Remember in Auditing Standard 2, there were lots of controls that people are testing. They tested anything that was called a control. AS 5 narrowed it down to testing controls that are important or key. AS 5 is more focused on key controls.

What is considered a key control? If it addresses the risk of a material misstatement, it is a key control. You can call it entity-level control, monitoring control, control activity or preventive or detective control. In the previous segment on walkthroughs, we talked about understanding the sources of potential misstatements. An example of a control being designed well is journal entry recording and approval. If we set up the rule that one person prepares a journal entry and then someone independent must review and approve it.

That is a good design. Whether the people actually follow that rule, is a different matter but control is effectively designed. But you can have compensating controls and could design alternative controls that can still make your operation effective.

A small company may not have have segregation of duties but can still design controls to prevent or detect errors or fraud. You can use a combination of asking questions, observing people do it and inspecting it. And performing a walkthrough includes a combination of these procedures:.

We have a control that says one person prepares the journal entry and another person has to independently review the journal entry. The person who reviews the journal entry has to have the appropriate authority and has to understand what he or she is reviewing.

internal audit effectiveness pdf

You have to have a combination of understanding to probe and ask the right questions and make sure the review is effective. The note in Paragraph 44 says that smaller companies can outsource parts of their accounting operations as long as the auditor can assess the competence of the person or the company that the activity has been outsourced to. As an example, outsourcing parts of the equity process is very typical of our smaller public companies.

But those skills are highly specialized.


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