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quality
products
and
services
consistent
with
the
organizations mission
Safeguard
resources
mismanagement directives
Develop and maintain reliable financial and management data, and
against
loss
due
to
waste,
abuse,
Control environment
Risk assessment
Control activities
Information and communication
Monitoring
Proposed manual does not contain any overview of internal control system. Should I
give it as an observation?
Auditors
should
follow
some
certain
moral
principles.
These
are
recommendatory in nature and provide the basic guidelines to the Internal Auditors
with regard to the moral issue and conflicts which they may face while carrying out
Internal Audit procedure.
1.4.1 Integrity, Objectivity & Independence of Internal Auditor
1.4.2 Confidentiality
Internal Auditor should exercise due professional care in carrying out the
work entrusted to him in terms of deciding on aspects such as the extent
of work required to achieve the objectives of the engagement, relative
complexity and materiality of the matters subjected to internal audit,
assessment of risk management, control and governance processes and
cost benefit analysis. Due professional care, however, neither implies nor
guarantees infallibility, nor does it require the internal auditor to go
responsibilities.
Internal Auditor shall also have a continuing responsibility to maintain
professional knowledge and skills at a level required to ensure that the
Company receives the advantage of competent professional service based
on the latest developments in the profession, the economy and the
relevant industry and legislation.
(Proposed manual does not contain any narrative description about the code of
ethics of the internal auditor. Should I give it as an observation?)
risk areas based on sensitivity. It might not be possible to cover all the medium and
low risk areas in a single year. In such case all efforts should be made to cover all
the areas within a span of 3 to 4 years. Once annual plan is finalized, audit program
should be designed, specifying the steps to be performed to execute the audit. The
Audit program should be agreed by Internal Audit Coordinator for the respective
units. Audit program should cover but not be restricted to the Appendices provided
in this manual for the major areas. Post finalization of audit program, Internal
Auditors should carry out Test of Design and Test of Effectiveness of controls as per
audit program. All the finding should be reported to management.
Identifying the risks
Step
1
Step
2
Step
3
Execute Audit
Step
4
Step
5
(Proposed manual does not contain any explanation or indication of risk based
approach. Should I give it as an observation?)
Proposed Scope,
purpose,
authority,
and
responsibility.
The
internal
audit
charter
establishes the internal audit activity's position within the organization, including
the nature of the internal audit managers functional reporting relationship with the
top management. It also authorizes access to records, personnel, and physical
properties relevant to the performance of engagements; and defines the scope of
internal audit activities. Final approval of the internal audit charter resides with the
top management.
The Internal Audit & Control Department (IACD) of SHIN SHIN GROUP does not
incorporate the process of developing an audit charter in the Proposed Scope,
Objective, Plan and Reporting Schedule of Internal Control.
2.4 Scope of the audit report should cover wider area than
mentioned
The Scope of the proposed internal audit system can be broadly divided into the
following:
1) Review of Systems
2) Review of Transactions
3) Review of Sanctions
4) Review of Internal Control
5) Review of Operations
The internal audit activity must evaluate the adequacy and effectiveness of controls
in responding to risks within the organizations governance, operations, and
information systems regarding the:
Financial audit
Cost audit and
Management audit
short, late and air shipment with penalty. These issues in our opinion are not
inconsistent in line with the internal control objectivity.
2.7
Human
Resource
Management,
Administration
and