Explain the responsibilities of Internal Audit Department of the Group.

Expert Solution

The Institute of Internal Auditor (IIA) offers the following description: "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The internal audit team is expected to be the whistle-blower within the company and alert the management about any wrong method being practiced or committed by the staff and officers of the company. The advance alerts may help the company to avoid bigger losses, stop undesirable malpractices and shield itself from the scorching scrutiny of government people. In fact internal auditors are expected to be the conscience keepers of the company.

Accordingly key roles and responsibilities of internal audit team are summarised below:

evaluates and provides reasonable assurance that risk management, control, and governance systems are functioning as intended and will enable the organisation's objectives and goals to be met
reports risk management issues and internal controls deficiencies identified directly to the audit committee and provides recommendations for improving the organisation's operations, in terms of both efficient and effective performance
evaluates information security and associated risk exposures
evaluates regulatory compliance program
evaluates the organisation's readiness in case of business interruption
engages in continuous education and staff development
provides support to the company's anti-fraud programs.
Performs the audits and reviews in the Internal Audit Plan in the diverse and computerised environment in DIT
Agrees the annual Internal Audit Plan with the President and the Audit Committee
Monitors and evaluates the adequacy and effectiveness of the System of Internal Control in DIT.
Internal Audit provides a consulting service for Management to aid the identification of risks and to advise on the implementation of systems of control in order to minimise financial operational and governance risks
Makes recommendations to management about improving the operational, financial and governance control systems with a view to attaining best value for money in DIT .
Provides an objective assurance for management and other stakeholders
Internal Audit staff report regularly to the Audit Committee and to the President of DIT.
Provides analysis, advice and information to management

ekkarill92 answered 2 years ago

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