scholarly journals ДОКУМЕНТУВАННЯ РЕЗУЛЬТАТІВ ДІЯЛЬНОСТІ ВНУТРІШНЬОГО АУДИТУ БАНКУ

2019 ◽  
pp. 54-60
Author(s):  
О. М. Долінська
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Evidence Base ◽  
International Standards ◽  
Practical Significance ◽  
Basic Material ◽  
Professional Judgment ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Audit Evidence

The article deals with the need to document of an assurance engagement of internal auditors of the bank and the organization of this process by the internal audit department. The purpose of the research is to analyze the latest requirements for documenting the results of the internal audit work in accordance with the International Standards for the Professional Practice of Internal Auditing. The object of research – the documents of an assurance engagement of internal auditors. The methods used of the research: analysis and synthesis, induction, methods of scientific knowledge. The hypothesis of research: a professional judgment is formed on documented provides receiving audit evidence for individuals who use an assessment of the activities of the internal audit department for specific purposes. The statement of basic material: the results of the analysis identify the documents used by the internal auditor to substantiate the findings of the audit findings. On the basis of the organization of the documentation process, the documents that selected to the implementation of an assurance engagement of internal auditors at each stage of the internal audit are selected and grouped. The originality and practical significance of the research is to develop of documents that will improve the organization and execution of an assurance engagement of internal auditors and will provide an evidence base for the results in the audit report. Conclusions of the research. Established that the implementation of documentation provides receiving audit evidence for the development of recommendations for decrease of risk and risk management, improving the system of internal control of banking activities and promoting the improvement of governance.

scholarly journals The importance of considering internal audit as a decision-making by top-management of an agricultural company

2020 ◽  
Vol 6 (3) ◽  
pp. 123-136
Author(s):  
Miloš Jokić
Keyword(s):  
Decision Making ◽  
Internal Control ◽  
Internal Audit ◽  
International Standards ◽  
Top Management ◽  
Internal Auditing ◽  
Internal Auditors ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
Valid Information

The top management's decision-making in an agricultural enterprise should be based on valid information gathered within the enterprise itself. Collecting timely business information is done daily by all sectors of the enterprise. Merely improving the security of information gathering and the safety of all parts of the enterprise is a task performed by trained internal control and internal audit personnel in the company, appointed by top management. In performing their duties on a regular basis, internal auditors should apply procedures and methodologies that are consistent with International Standards on the Professional Practice of Internal Auditing in their work. The aim of the paper is to emphasize the importance of implementing the adopted methodology of work of internal auditors in agricultural companies. The author points out those standards that are in line with best audit practice should be applied in internal audit work. The contribution of the study authors is to emphasize the importance of applying the internal audit profession in the regular operation of agricultural enterprises, which is in line with the general objective of improving the regular business operation.

scholarly journals The effects of human resources in internal audit on external audit pricing decision

2018 ◽  
Vol 15 (4-1) ◽  
pp. 165-180
Author(s):  
Moon Kyung Cho
Keyword(s):  
Small Firms ◽  
Internal Audit ◽  
Audit Fees ◽  
Auditor Independence ◽  
Professional Judgment ◽  
External Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
General Internal

This study presents evidence that external audit fees are negatively and significantly associated with the proportion of general internal auditors. Further, external audit hours are negatively and significantly associated with the proportion of general auditors without affecting external unit audit price. In addition, the results of the data adjusted for firm size suggest that audit fees and audit hours decrease for smaller firms as the proportion of general internal auditor increases. The result implies that both small firms and their external auditors are encouraged to utilize more general internal auditors in performing an external audit. The author finds no evidence that external audit fees are associated with internal auditor expertise or experience. This shows that external auditors are not likely to rely on internal auditors’ professional judgment in performing an external audit due to reduced auditor independence.

scholarly journals The Effects of Interaction between Internal Auditor and Audit Committee on Fraud Detection in Malaysia

2018 ◽  
Vol 7 (4.38) ◽  
pp. 1338
Author(s):  
Sunita Lylia Hamdan ◽  
Nahariah Jaffar ◽  
Ruzanna Ab Razak
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Specific Interaction ◽  
Fraud Detection ◽  
Internal Audit ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors

This study aims to examine the effect of interaction between internal auditor and audit committee on fraud detection in Malaysia.  Specific interaction is firstly; audit committee approving the appointment of chief audit executive, the evaluation of chief audit executive, the dismissal of chief audit executive, the internal audit budget and the internal audit plan or program.  Secondly, audit committee’s involvement in reviewing internal auditor’s work specifically; providing input for the internal audit plan, reviewing the results of internal auditing related to financial reporting, reviewing the results of internal auditing related to internal control, reviewing the results of internal auditing related to compliance with laws and regulation, reviewing the internal audit involvement in management responses to internal audit suggestions, reviewing the difficulties or scope restrictions encountered by internal auditors and reviewing the coordination between internal auditors and external auditors.  Survey questionnaires were mailed to internal auditors attached to 782 companies listed on Bursa Malaysia’s main market. The results of this study suggest that involvement of audit committee in approving chief audit executives’ matters is insignificant on internal auditors’ contribution to fraud detection.  However, audit committee’s involvement in reviewing internal auditors’ work significantly influence the internal auditors’ contribution in fraud detection.       

The Development of Internal Auditing as a Profession in the U.S. During the Twentieth Century

2017 ◽  
Vol 44 (2) ◽  
pp. 47-67 ◽  
Author(s):  
Susan Parker ◽  
Lynn A. Johnson
Keyword(s):  
Professional Identity ◽  
Internal Control ◽  
Self Regulation ◽  
Internal Audit ◽  
Professional Community ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Business World ◽  
Internal Auditors ◽  
The Impact

ABSTRACT This paper traces the development of internal auditing from the standpoint of its professional identity. The question of how internal auditors have historically seen themselves bears on how they function as integral parts of internal control systems, and may help researchers formulate future empirical studies of internal auditing. Over the years, the self-perception of the internal audit profession's function has varied greatly. Internal auditing has lived, to some extent, in the shadow of the public accounting profession, while struggling to achieve public recognition, status in the business world, and a defined role separate from that of an internal monitor, subsidiary to the external auditor. While there have been many changes in terms of the formation of a professional community, belief in the importance of the work, and the growth of a system of self-regulation, the demands of various constituents and the desires of internal auditors for professional status have led to a persistent struggle to define the appropriate functions and organizational placement of internal audit. This struggle continues up to the present time. Several things stand in the way of a complete professional identity for internal auditing. Internal auditing cannot lay claim to a clearly defined role that is uniquely its own. The internal audit function (IAF) does not own a skill set or knowledge base that is not shared by the external auditors. The impact on the ability to distinguish the internal auditor from the external consultant is detrimental to the profession. Neither has the internal auditor been able to attain complete autonomy. While the IAF now reports to the Board of Directors or its audit committee more frequently than in the past, its continuing strong connection with management hinders its ability to be truly self-determining. On the other hand, the contributions that internal auditors make to their organizations are very real, and the lack of an externally mandated role allows them to be utility players. For management, the availability of a utility player who can provide internal consulting or assistance that saves overall compliance costs is valuable, as is the ability for boards to rely on an IAF with a deep knowledge of the organization.

Internal Audit and Fraud

2021 ◽  
pp. 216-229
Author(s):  
Safa Chemingui
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Three Dimensions ◽  
Fraud Triangle ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
Third Dimension ◽  
The One

The purpose of this chapter is to study the role of the internal audit function in detecting and preventing fraud. First, this chapter will determine the notion and types of fraud on the one hand and the fraud triangle that companies face and that internal auditors try to detect and address on the other hand. Second, a description of the notion of internal audit will be provided, along with the specificities of this function at the heart of companies. The procedure of internal control and the fundamental principles leading to its effectiveness will be identified. In this regard, the authors analysed the profile of internal auditor. Therefore, an internal audit function with competent staff would generate a good system of internal control and is able to maintain the internal audit's ability to detect fraud. Finally, the role of the internal auditor in preventing fraud is analysed with reference to three dimensions: The first dimension is preemptive. The second dimension is social and ethical. The third dimension is the practical dimension.

scholarly journals ДОСВІД ОРГАНІЗАЦІЇ ВНУТРІШНЬОГО АУДИТУ В НІМЕЧЧИНІ: ІСТОРИЧНИЙ ОГЛЯД ТА МЕТОДОЛОГІЯ

2020 ◽  
pp. 71-78
Author(s):  
Г. В. Столярчук ◽  
М. С. Шевелін
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
International Standards ◽  
National Standards ◽  
European Countries ◽  
Practical Significance ◽  
Important Place ◽  
National Legislation ◽  
Legal Provisions ◽  
Legal Forms

To date, there is still a debatable issue regarding the introduction of international standards in the practice of internal audit. As the experience of foreign countries has shown, not all countries support the application of international standards, some are of the opinion that it is better to use national standards. One of such countries is Germany with its peculiarities of historical and methodological development of internal audit. The purpose of the research was to develop scientific and practical recommendations for improving the process of organizing internal audit on the example of the experience of Germany. The object of research. The article focuses on the study of the organization of internal audit in German enterprises. The methods used in the research are a systematic approach, comparison, methods of induction and deduction. The hypothesis of the research is that the quality of the organization of internal audit at the enterprise depends on the effectiveness of the developed methodological framework and regulatory regulation of audit in a particular country. The statement of basic materials. In the current economic environment, an important place belongs to the study of the role of internal audit and its place among other types of control procedures. The reliability of the results of internal audit depends on the efficiency of the enterprise, which in turn affects the efficiency of all social production. In international practice, internal audit has long been recognized. Germany is one of the developed European countries. Therefore, the issues of organization of internal control systems in German companies, risk management, construction of internal audit services, including the application of internal audit standards, based on the legislation of Germany and the EU. Originality and practical significance of the research lies in the development of an approach to the organization of internal audit, based on the peculiarities of the national legislation of a particular country. Conclusions and perspectives of further research. The results of the research confirm the possibility of applying the approach to the organization of internal audit, which is based on the peculiarities of national legislation in Ukraine. The prospect of further research will be a further analysis of the legal provisions of the organization of internal audit of European countries at enterprises of various organizational and legal forms.

scholarly journals THE ROLE OF INTERNAL AUDIT IN THE FIGHT AGAINST CYBER CRIME

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Zdravko Todorović ◽  
Boris Todorović ◽  
Darko Tomaš
Keyword(s):  
Internal Control ◽  
Cyber Security ◽  
Internal Audit ◽  
International Standards ◽  
Security Requirements ◽  
Cyber Crime ◽  
Global Business ◽  
Research Results ◽  
Internal Auditors ◽  
The Impact

The internet is constantly changing the way we live and conduct business. Global business surroundings impose all organizations across to have a secure digital infrastructure for fighting against cybercrime. Cyber crime is on the raise in this decade. Cyber crime is a criminal activity that is focused against compromising security of information systems in enterprises, in order to acquire certain profits, or to incur damage, theft or loss. Types of cyber crime include theft, evasion, or using information in order to unlawfully obtain profits from them. This paper will present certain information about cyber crime and most common types of it. According to international standards for internal audits, internal auditors are authorized for fight against fraud, which means authorization for fight against cyber crime. Main purpose of this paper is to find model for organizing internal audit for purpose of fighting cyber crime. Therefore, it is necessary to determine: internal audit standards that your organization must adhere to in fight against cybercrime, identify security requirements for standards, determine the goals, risks and security policy of the organization, raise employee awareness of the dangers of cybercrime, involve top management in the orbit against cybercrime, conduct employee training on data security and the like. Cyber security is basically about managing future risk, and requires insight into current and future vulnerabilities and how to prevent or reduce them, the likelihood of threats and costs associated with potential outcomes, and how to mitigate them. Internal auditors must be aware of impending regulatory changes based on IIA standards (The International Standards for the Professional Practice of Internal Auditing) related to computer security. Internal auditors should understand the impact of cyber threats on the organization. In particular, they should include this in their internal audit plan based on the risk of cybercrime. Internal auditors should have a strong partnership with the CIO (Chief Information Officer) and CISO (Chief Information Security Officer), for the sake of a trusted advisor in the fight against cybercrime. Internal auditors should provide an independent overview of the cyber security strategy. Modal will be based on COSO (The Committee of Sponsoring Organizations of the Treadway Commission’s) Internal Control — Integrated Framework and will feature five core principles: 1) creating control environment for fighting against cyber crime, 2) risk assessment for cyber crime, 3) projecting and implementing activities for fighting against cyber crime, and 5) monitoring activities. Research results will show new scientific facts and knowledge about methods for fighting cyber crime worldwide. Managers and internal auditors will have practical benefit from research results for implementing cyber crime prevention programs.

scholarly journals THE EFFECT OF THE ROLE OF LEADERSHIP ON ORGANIZATIONAL CULTURE AND INTERNAL CONTROL EFFECTIVENESS

2020 ◽  
Vol 5 (01) ◽  
pp. 1
Author(s):  
Francisca Devi Anita ◽  
Dwi Setiawan
Keyword(s):  
Organizational Culture ◽  
Organizational Behavior ◽  
Internal Control ◽  
Unethical Behavior ◽  
Internal Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Control Effectiveness ◽  
Main Factor

<p><strong><em>Good internal control can provide confidence that an organization can achieve its goals with ethical actions. The phenomenon that occurs at this time shows that organizational culture is the main factor causing the emergence of huge scandals that afflict an organization that can prevent the organization from achieving its objectives. Risk in culture occurs when the behavior of members of an organization is not in line with the behavior that the organization wants to instill, causing unethical behavior that can hinder the achievement of goals and influence internal control of the organization.</em></strong></p><p><strong><em>At present, the organizational culture is an essential area within the scope of internal audit work. The role of the current internal auditor is expected to provide adequate assurance regarding one element of risk culture, namely the role of the leader (tone from the top) that has been carried out by following the values and ethics instilled by the organization. Leaders have a significant influence on the formation of culture and internal control systems in organizational units so that the role of internal auditors can provide confidence that the culture formed does not negatively affect overall organizational behavior becomes important.</em></strong><strong><em>  </em></strong></p>

A summary of the global Common Body of Knowledge 2006 (CBOK) study in internal auditing

2009 ◽  
Vol 24 (9) ◽  
pp. 813-834 ◽  
Author(s):  
Priscilla Burnaby ◽  
Susan Hass
Keyword(s):  
Internal Control ◽  
World Wide ◽  
Value Added ◽  
Internal Audit ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Ongoing Research ◽  
Content Type ◽  
Internal Auditors ◽  
Body Of Knowledge

PurposeThe 2006 global Common Body of Knowledge (CBOK) study is part of an ongoing research program designed to document how internal auditing is practiced. The purpose of this paper is to summarize responses to three global surveys of internal auditors.Design/methodology/approachBased on literature reviews and a pre‐scope questionnaire, the researchers develop three questionnaires that are answered by internal auditors world wide. Topics in the questionnaires, which are translated from English into 16 languages, include the attributes of an effective internal audit activity (IAA); compliance with The Institute of Internal Auditor (IIA) Standards; internal auditor skills, competencies, and knowledge; internal audit tools and techniques; and emerging roles of the IAA.FindingsThe profession of internal auditing is a rich resource for organizations as the IAA monitors the adequacy and effectiveness of management's internal control framework and contributes to the integrity of corporate governance; risk assessment; and financial, operating, and IT systems.Practical implicationsThe participation of IIA members from 91 countries and 9,366 usable responses provides information about the evolving role of internal auditing as a value‐added activity that helps an organization manage its risks and take advantage of opportunities. The CBOK 2006 database can be used to improve the understanding of the current state of internal auditing practices; anticipate the use of new skills, tools, and technologies; and promote the enhancement of standardization and performance of internal auditing world wide.Originality/valueThis paper summarizes information in the most comprehensive database ever to capture a current view of the global state of the internal audit profession.

CURRENT STATE OF REGULATION OF INTERNAL FINANCIAL CONTROL AND INTERNAL FINANCIAL AUDIT IN THE BUDGET SECTOR

2020 ◽  
Vol 1 (9) ◽  
pp. 119-124
Author(s):  
D. R. GINIYATULLINA ◽  
◽  
◽  
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Regulatory Framework ◽  
International Standards ◽  
Financial Control ◽  
Budget Process ◽  
Federal Law ◽  
Government Sector ◽  
General Government ◽  
Financial Audit

Since 2013, there has been an active transformation of the regulatory framework related to the implementation of international standards of internal audit in Russian practice, which regulates the organization and implementation of internal financial control and internal financial audit in the general government sector. However, the regulatory framework is constantly undergoing changes that are associated with the need to take into account the specifics of the functioning of these organizations. Particular attention is paid to the development of the methodological foundations of internal financial control and audit on the basis of amendments made by the Federal Law of July 26.07.2019, 199-FZ to the Budget Code of the Russian Federation. In particular, internal financial control was removed from the budgetary powers of participants in the budget process. When these changes were implemented, a lot of questions arose, such as the exclusion of internal financial control as a separate budgetary authority means that this type of control can be omitted, journals and internal control cards are not kept.

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