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Internal Audit Presentation

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					INTERNAL AUDIT FUNCTION
 – Why Internal Auditing
 – Costs & Benefits
 – Implementation Process




                            TARIQ A. MIR APA, ACA
WHY INTERNAL AUDIT?
Internal Audit helps organizations overcome shortcomings in operating procedures and internal
controls, resulting in:

   Loss of cash
   Loss of Equipment, Property, Inventory
   Proprietary Information
   Internal or External Theft
   Collusion
   Fraud & Embezzlement
   Policy and Procedure Violations


The Internal Audit Process encompasses three major areas of loss prevention and liability exposure:

   Physical
   Personnel
   Procedural

Internal Audit enables management to focus on adding value to business.




                                                                                TARIQ A. MIR APA, ACA
Costs & Benefits IA is a Cost Reduction And Efficiency Improvement Activity
Benefits:

   Effective control over cash and company assets
   Effective control over fraud, embezzlement and collusion
   Behavioral modification of personnel
   Statements of fraud and liability and/or breach of company policies
   Controlling employment compensations
   Identification of positive and negative operation activities
   Creation of a positive atmosphere for employees about the audit process
   Utilization of audit findings as a planning & management tool
   Identification of internal control weaknesses

Costs:

   Salaries and associated costs of IA staff


                                                                  TARIQ A. MIR APA, ACA
Internal Audit Process - Risk Based Audit Plan
Planning Phase                 Fieldwork Phase                   Reporting Phase               Follow-up Phase

-Formulate  audit scope,       -Carryout work in                 -Compilation   of fieldwork   -Follow up of previous
objectives, timelines &        accordance with the plan          results                       audit recommendations
deliverables
                               -Reviewing  financial activity,   -Provideaction plans with     -Review  work plan
-Review   of past audit        administrative and business       timeframes to address         quarterly to reflect
reports                        procedures                        recommendations               changes in the risk and
                                                                                               control profile and the
-Understand  existing          -Identify
                                       areas of risk and         -Processreengineering         results of recent audits
control environment            concern in internal controls      based on fieldwork
                               and procedures
-Carryout risk                                                        summary report to
                                                                 -Final
assessment                                                       Senior Management

-Based  on the risk profile,
design & development of
audit programs




                                                                                                    TARIQ A. MIR APA, ACA
THANK YOU!




             TARIQ A. MIR APA, ACA

				
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posted:12/2/2011
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