Auditing

So You Have an Audit Function, NOW WHAT!?

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Many organizations ranging from small to large, public to private are investing in internal auditing functions. Some do it only because they are mandated by law, others because it is a good personnel development tool, and still others realize the benefits of having internal consultants. Organizations can reap substantial benefits from an effectively utilized audit function. However, an ineffective internal audit execution strategy can waste money and time and frustrate audit personnel. The following 4 practices can significantly impact

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The Power of Observation & Inquiry

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Observation and Inquiry is an important skill set that must be in every auditors toolkit. It requires us to remain objective at all times. I find it interesting how this skill is not only applicable to auditing, but also in “life outside of audit” interactions. I recently wrote about what appeared to be bribery at the London Olympics. Further inquiry disclosed that this normal and acceptable behavior. Well, I have noticed another instance of good observation, ineffective inquiry.

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5 Qualities of a Strong Board

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The role of the Board in organizations is one of oversight. Boards are charged with representing various stakeholder groups to ensure the organization fulfill their mission, vision, goals and objectives. A strong Board provides unparalleled guidance. A weak Board can lead (or oversee) an organization down a path to destruction. Given the significance of the role, there is much discussion about what a successful Board should look like.

As internal auditors, we support the Board by identifying, evaluating and reporting on the

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4 Factors to Building a World Class Audit Function

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Dictionary.com defines “world class” as ranking among the world’s best. So what does that really mean for an internal audit department? The scope and nature of an auditor’s job varies by organization, size and region. As a result, “world class” is difficult to clearly define. However, there are a few characteristics that can enhance the value an audit function delivers to an organization. I believe these characteristics surround the Personnel, Practices, Perception and Partnerships

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The Issue with Audit Exceptions

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The issue with audit exceptions is that many audit functions include exceptions as the primary theme of audit report reportable items. Okay, there I said it. Now to provide an example.

I was recently reading an internal audit report from a governmental agency in which the auditors reviewed the bank reconciliation process. The report read as follows:

During a

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External Auditors to “Assess” Internal Audit Functions?!?

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The International Auditing and Assurance Standards Board (IAASB) recently released International Standard on Auditing (ISA) 610, Using the Work of Internal Auditors, which addresses the external auditor’s responsibilities when using the work of an internal audit function. It requires external auditors to “evaluate” the internal audit function. Specifically it states

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