Internal Audit Basics
An independent, objective assurance, and consulting activity, designed to add value and improve and organization's operations.
Internal Audit
Procedures and policies implemented to ensure the integrity, confidentiality, and availability of information technology systems and data.
IT Controls
The phase of an audit where objectives, scope, and resources are determined, and a strategy is developed to guide the audit process effectively.
Planning
An audit that assesses whether an organization is adhering to regulatory requirements, internal policies, and procedures to ensure compliance.
Compliance Audit
The senior executive responsible for managing the internal audit function, ensuring its effectiveness and alignment with organizational objectives.
Chief Internal Auditor
An unbiased mental attitude that internal auditors must maintain throughout the audit process to ensure credible results.
Objectivity
Controls designed to prevent errors or fraud from occurring in the first place, such as authorization and segregation of duties.
Preventive Controls
A description and schedule of audits to be performed over a certain period; includes areas to be audited, type and scope of work, and high-level objectives
Audit Plan
An objective examination of evidence for the purpose of providing an independent assessment on governance, risk management, and control processes for the organization.
Assurance Services
A formal document that defines the internal audit activity's purpose, authority, and responsibility.
Audit Charter
The quality of being honest and having strong moral principles, ensuring consistency and fairness in actions and decisions.
Integrity
Controls designed to identify and correct errors or fraud that have already occurred, such as reconciliations and audits.
Detective Controls
Discuss audit purpose and timing with the client
Entrance Conference
Advisory activities provided by internal auditors to help improve an organization's operations and address specific issues or challenges.
Consulting Services
A subcommittee of the board of directors responsible for overseeing the financial reporting process, audit process, internal controls, and compliance with laws and regulations.
Audit Committee
The freedom from conditions that threaten the ability of internal auditors to carry out their responsibilities in an unbiased manner.
Independence
Measures implemented to correct identified issues or deficiencies in internal controls, ensuring that errors or irregularities are addressed and prevented from recurring.
Corrective Controls
Gather information about the audited area
Background Review
The continuous observation and analysis of systems, processes, or activities as they occur, allowing for immediate detection and response to issues.
Real-time Monitoring
Established guidelines and principles that govern the auditing process, ensuring consistency, reliability, and quality in audit practices.
Audit Standards
What are the four phases in internal audit life cycle?
Planning, Fieldwork, Reporting, and Follow-up
Mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.
Internal Controls
The overall process of identifying, analyzing, and evaluating potential risks that could impact an organization's ability to achieve its objectives.
Risk Assessment
Evaluating controls to determine if they were designed properly and operating effectively
Control Testing
Outlines principles of integrity, objectivity, confidentiality, and competency, guiding the ethical behavior and decision-making of internal auditors.
Code of Ethics