Question

Search the web for info on the state of the internal auditing profession in today’s environment.Provide link to source please

Discuss how the current financial crisis, recession and/or recent legislation has impacted the following:

1). Internal Audit’s role & status within an organization,

2) Its relationship with the external auditors,

3) Importance of the Certified Internal Auditor (CIA) designation

4) other trends related to the internal auditing profession

Answer 1

Answer 1

Over a Period of time, Scope of internal auditing has been widened so as to cover all operations besides accounting and financial operations. To be effective the internal auditor must be regarded as part of the management and not merely as an assistant thereto. He must have authority to investigate from the financial angles, every phase to the organisational activity under any circumstance

There is some major role of the internal audit which are as follows

1. To maintain adequate system of internal control by a continuous examination of accounting procedures, Receipt and disbursements and to provide adequate safeguard against misappropriation of assets

2. To observe unusual facts and circumstance and bring them to notice of management

3. To appraise policies and procedures prevailing in the entity and bring to the notice of the management and deficiencies, where these require to be corrected

There are some other Functions of Internal Audit with related to organisation Structure which are as follow:

The Internal Audit Should Conduct an Appraisal of the organisation Structure to Ascertain

· Whether it is Harmony with the objectives of the Enterprise and

· Whether the assignment of responsibility is in the consonance there with.

For the Purpose of above the Internal Audit Should:

1. Review the Manner in which the activities of the enterprise are grouped for the, managerial control so as to find out whether responsibility are in the harmony with the grouping pattern

2. Examine the Organisation chart to find out whether the structure is simple and economical and that no function enjoys an undue dominance over the others

3. Ensure that the responsibility of managerial staff at headquarters do not overlap with those of Chief executive at operating units

4. Evaluate The process of managerial development in the enterprise