INTERNAL AUDIT AS A FUNCTION

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INTERNAL AUDIT AS A FUNCTION AUDIT ACTIVITIES

• PART III - B

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• The audit cycle we discussed in Part III-A we
  will discuss it here from a different point of
  view.
• Generally speaking, Internal Audit work and
  management of IAD as organization are similar
  among organizations. They may differ in the
  details due to various reasons such as
• Type of Industry
• Corporate Culture
• Level of independence of Internal Audit
• Department (IAD)
• Governments and other outside entities
• rules and regulations (heavily regulated)
• Nature of the audit assignment.

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• We can safely group the audit work and managing
  IAD into several categories (tasks). However, we
  can use the IIA Practice Advisories (PA)
  guideline, as well as issued interpretations, as
  the minimum quality requirements for these tasks
• 1- ORGANIZATIONAL TASKS
• Organizational Independence of IAD (a, b c)
• Reference PA 1110-1
• Managing IAD
• Reference PA 2000-1
• Planning Audits, Approval Risk
• Assessment
• Reference PA 2010-1, 2020-1 2010-2

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Organizational Independence (a)
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Organizational Independence (b)
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Organizational Independence (c)
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• 2- ENGAGEMENT TASKS
• Audit Engagement Planning and Objectives
• Reference PA 2200-1 2210-1
• 3- FIELD WORK TASKS
• Engagement supervision
• Reference PA 2340-1
• Engagement Work program and Approval work program
  (Audit program 1, 2 3)
• Reference PA 2230-1 2240-1
• Identify Information needed for the Engagement
• Reference PA 2310-1

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AUDIT PROGRAM 1RISK BASED
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AUDIT PROGRAM 2TRADITIONAL
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AUDIT PROGRAM 3
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• Audit Sampling
• Reference PA 2100-10
• Analysis and Evaluation of Engagement work
• Reference PA 2320-1
• Recording information collected (audit work
  papers 1,2,3 4) and control of records
• Reference PA 2330-1 2330A1-1
• Communicating and recipients of Engagement
  results
• Reference PA 2410-1 2440-1

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WORK PAPER 1-4
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WORK PAPER 2-4
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WORK PAPER 3-4
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WORK PAPER 4-4
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• 4- AFTER FIELD WORK TASKS
• MONITORING PROGRESS
• Reference PA 2500-1
• FOLLOW-UP PROCESS
• Reference PA 2500.A1-1
• MANAGEMENT ACCEPTANCE OF RISK
• Reference PA 2600-1