Internal Auditing notes

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ACC621 Midterm review
Internal auditing is an independent objective assurance and consulting acitivity designed to add value and improve an organizations operations.
Adding value is provided by improving opportunities to achieve organizational objectives identifying operational improvement reducing risk through exposure through both assurance and consulting.
Auditing has its key components
- accomplish objectives
-evaluate and improve effectiveness of risk management
-assurance and consulting activity designed to add value improve operations
-independence and objectivitiy
-systematic and disciplined approach.
Strategic objectives- pertain to value creation management makes on behalf of shareholders. Longterm strategies look into the future management plans like increasing market share
Operation objectives- being effective and efficient in organization objectives performance, profit goals all short term goals reporting- being reliable of the reporting to be sufficient compliance- following the applicable laws and regulations
Internal auditors have objectives that help business objectives reach their goals
Governance is a process by the board of the directors to authorize direct and oversee management to achieiving the organization 's objectives.
Along with objectives comes risk which affects achievement of objectives
Control is in risk management is a process conducted to mitigate risks to acceptable levels.
Independence and objectivitiy are both important. It deals with being free from conditions that threaten your objectivity that could manipulate how you make decisions, like pressure from management. Objectivity is an unbiased mental attitude oe bas when performing duties like having a third party auditor and not your brother audit your company 's work.
From a systematic and discpliined stand point, planning engagement, performing enagagment, and communicating engagement. Planning deals with understanding the customer, setting objectives and

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