Internal Audit Chapter One Summary

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Chapter One Summary

Chapter One
An internal auditor is one who is independent, knowledgeable, works well in a team and is a leader. An internal auditor adds value to a company by improving a business’s organizational operation and helps them achieve its objectives by improving the effectiveness of risk management, control and governance processes. Internal Auditing Processes

A business’s objectives are classified into four categories: strategic, operations, reporting, and compliance. An internal auditor uses these objectives as a foundation for defining what they want to achieve out of an audit.. The three main areas that are evaluated are risk management, control, and governance processes. By evaluating these three areas internal auditors can greatly improve the processes to help the business achieve their business objectives. Internal Auditor Characteristics

An internal auditor is independent and objective, which is essential because they need to remain impartial and unbiased in their decisions. It is also essential for an internal auditor to have strong interpersonal skills and personal qualities. Personal qualities of an internal auditor include integrity, passion, strong work ethic, curiosity, creativity, initiative, flexibility, effective communicator, and strong conflict management skills. Interpersonal skills are important because the auditor is responsible for helping a business achieve goals and they work closely with people. Education is extremely important. Knowledge in auditing, accounting, information systems, technology, business ricks, controls, management, finance, economics, commercial law, and quantitative methods are mandatory. It is beneficial if the auditor is knowledgeable in both internal auditing and information systems. Conclusion

Internal auditing is a valuable, essential part of any business. Internal auditors help business’s achieve their objectives in strategic, operations, reporting, and compliance by evaluating risk...
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