Audit Fields
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The document outlines various types of audits conducted by internal audit, including management, operational, financial, IT, fraud, and business audits. Each audit type has specific focuses and methodologies, assessing compliance, organizational efficiency, risk, and financial integrity. An emphasis is placed on the collaboration and shared responsibility between internal audit and involved parties to ensure successful outcomes in audits and evaluations.
Audit Fields
- 3. Management Audit • During a management audit, Internal Audit tests management’s compliance with the established policies, guidelines, and procedures. • Internal Audit also examines the effectiveness and efficiency of management decisions and the associated internal controls. • the effect of management decisions is a key benchmark of how successfully managers perform their management duties. • For a variety of reasons, management audits conducted by Internal Audit may lead to difficulties, depending on the corporate culture, the role and importance of management, as well as the managers to be audited and the auditors them-selves.
- 4. Operational Audit • Operational audits can address issues relating to organizational and work flow structures which can affect almost all business units. • Operational audits may examine traditional, corporate-wide, and project-related processes. • The audit normally comprises several audit steps, which deal with all issues of process design, internal controls, risk cover, and any relevant financial accounts. • In addition to the actual processes, the controls set up in the company must be examined and verified with suitable tests.
- 5. Financial Audit • When performing financial audits, auditors examine both accounting and financial data. • During an audit, auditors can either examine the financial statements as a whole, or analyze individual accounts and items. • During financial audits, all applicable legal, tax, and accounting standards must be observed.
- 6. IT Audit • The aim of IT audits conducted by Internal Audit is to test relevant system structures and processes for their compliance with applicable policies, guidelines and standards. • This audit field covers all process-related issues, ranging from planning and organization, information, and support (including project management) to access authorization, and data and antivirus protection. • During the audit, it is important to integrate all relevant (internal and external) guidelines and written documentation. • The structure of the IT processes should be examined in terms of their overall integration into the entire business process. The main focus in this regard should be on the interaction of organizational and automated controls. • IT audits can have an internal as well as an external focus. • The expertise required for IT audits has led to the creation of a separate auditor profile.
- 7. Fraud Audit • Most cases of fraud have a short or long term financial impact that is more or less directly measurable. • Generally, the term fraud refers to any kind of attack on a company or its employees. • Internal Audit must respond to fraud with a self-contained, consistent process model. • Internal Audit’s approach to fraud requires taking preventive measures and investigating suspected or actual cases of fraud. • The requirements profile for fraud auditors is very broad. In addition to technical knowledge, an interest in forensic audits is recommended.
- 8. Business Audit • Today, relationships with external parties (such as partners or critical vendors) expose organizations to risk and therefore require Internal Audit’s attention. • The Board or management may engage Internal Audit in audits of these external relationships for a variety of reasons, including de-escalation, legal claims, etc. • Internal Audit may perform full-ledged audits of these relationships or projects, known as business audits. Alternatively, Internal Audit may perform business reviews, which are less rigorous and require less fieldwork. • The objectives of business audits or business reviews are generally to ensure compliance with legal, regulatory and contractual requirements and to evaluate risk related to external relationships. • Internal Audit should seek input from all interested parties to develop a shared responsibility for the success of the relationship and/or project.