In public companies, a committee of non-executive directors that is responsible for oversight of financial reporting, internal and external audits, compliance with regulatory codes, and risk management. This committee enhances accountability, auditor independence, and public confidence.
An audit strategy outlines the general approach and key components of the audit, serving as a blueprint for the audit plan, which details the specific procedures and steps to be taken.
An auditors' report, also known as an audit report, is an official opinion issued by auditors appointed to examine the financial statements of a company or organization. The report provides an independent assessment of whether the financial statements present a 'true and fair view' of the company's financial performance and comply with regulatory requirements. It plays a crucial role in ensuring transparency and accountability in financial reporting.
Computer-Assisted Audit Techniques (CAATs) are techniques that utilize computer systems to execute auditing processes, which streamline the traditional audit workflow, enhance accuracy, and improve overall audit efficiency.
An external audit is a review of the financial statements or operations of a company conducted by an independent auditor. It serves as a key measure for shareholders to ensure the accuracy and reliability of financial information.
The Institute of Internal Auditors (IIA) is a professional association founded in 1945 in the USA dedicated to the advancement of internal auditing standards and practices. Known for its journal, *The Internal Auditor*, the IIA also operates a British and Irish branch, now the Chartered Institute of Internal Auditors.
An internal audit is a self-conducted examination of an organization's operations, intended to evaluate and improve the effectiveness of internal controls, risk management, and governance processes.
An internal auditor is an employee who is responsible for providing independent and objective evaluations of the company's financial and operational business activities. They assess compliance with laws and regulations, ensure policies are effective, and help maintain organizational integrity.
Internal control encompasses measures that an organization implements to reduce opportunities for fraud or misfeasance. Examples include requiring multiple signatures on documents, enhancing security for stock handling, task division, maintaining control accounts, using special passwords, and handling computer files securely. It is crucial for internal audits to ensure the effectiveness of these controls to instill confidence in external auditors and management regarding the integrity of the organization’s operations.
An operational audit is a thorough review of an organization's activities to assess whether they are being carried out efficiently and effectively, and to identify opportunities for improvement.
Segregation of duties (SoD) is an internal control concept designed to prevent error and fraud by ensuring that no single individual has control over all aspects of a critical transaction or operation.
The Statements on Internal Auditing Standards (SIAS) are guidelines issued to enhance the competence and consistency of internal auditing within organizations.
