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  • BAC 4664 Internal Auditing Tutorial 5

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    Christoper Yuan
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    Internal auditing provides assurance to an organization by evaluating and improving risk management, control, and governance processes. It also provides consulting services to help managers address risks and improve operations. Consulting differs from assurance in that it involves advising and assisting managers, rather than independently evaluating processes. When managers closely monitor operations and controls, they in effect perform the role of internal auditors, allowing the formal internal audit team to reduce testing scope since audits are effectively being continuously performed. Management's incentives for strong internal controls include protecting assets, ensuring accurate financial reporting, promoting operational efficiency, and compliance with laws and regulations.

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    auditing

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    141688_Tutorial 5

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    Internal auditing provides assurance to an organization by evaluating and improving risk management, control, and governance processes. It also provides consulting services to help managers address risks and improve operations. Consulting differs from assurance in that it involves advising and assisting managers, rather than independently evaluating processes. When managers closely monitor operations and controls, they in effect perform the role of internal auditors, allowing the formal internal audit team to reduce testing scope since audits are effectively being continuously performed. Management's incentives for strong internal controls include protecting assets, ensuring accurate financial reporting, promoting operational efficiency, and compliance with laws and regulations.

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    © All Rights Reserved
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    10 views1 page

    BAC 4664 Internal Auditing Tutorial 5

    Uploaded by

    Christoper Yuan
    Internal auditing provides assurance to an organization by evaluating and improving risk management, control, and governance processes. It also provides consulting services to help managers address risks and improve operations. Consulting differs from assurance in that it involves advising and assisting managers, rather than independently evaluating processes. When managers closely monitor operations and controls, they in effect perform the role of internal auditors, allowing the formal internal audit team to reduce testing scope since audits are effectively being continuously performed. Management's incentives for strong internal controls include protecting assets, ensuring accurate financial reporting, promoting operational efficiency, and compliance with laws and regulations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    BAC 4664 Internal Auditing Tutorial 5

    Question 1
    Briefly describe the nature of internal auditing. What does it means when internal
    auditing is described as an assurance and consulting activity? How does consulting
    differ from assurance?

    Question 2

    During the preliminary survey and especially during the interviews with operating
    management, internal auditors may be able to take measure of the manager. There is
    no better control than knowledgeable, accessible, all-seeing management.

    When that kind of management exists, the manager is, in effect, an internal auditor.
    And where such management is effective, the internal auditor can safely reduce the
    extent of audit. Audits, in effect, are being done continuously by the watchful manager.
    Discuss.

    Question 3

    What are managements incentives for establishing and maintaining strong internal
    controls?

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