Internal Auditing
Subtitle: An Integrated Approach
Edition: 2nd
Publisher: Juta Academic
Published: January 31, 2007
Language: eng
Format: Paperback
ISBN-13: 9780702166693
Subjects: Auditing - General; Business & Economics; Business/Economics
Description: The Institute of Internal Auditors believes that organizations are best served by a fully resourced and professionally competent internal auditing staff providing value-added services critical to the efficient and effective management of an organization. 
This book addresses the area of professional competence required of internal auditors. It is designed primarily for lecturers, and for students of internal auditing at undergraduate and postgraduate level intending to pursue a career in internal auditing, as well as those with a specialist interest in governance, risk and control issues for organizations. The basic concepts, philosophy and principles underlying the practice of internal auditing, including the relationships between the internal auditor, management and the external auditor, are covered in this book.
In addition, students will gain a knowledge and understanding of the nature of an organization, as well as risk management and the role of internal auditing in managing organizational risks and understanding current developments in corporate governance in both the public and private sectors. 
The book will also prove an invaluable aid to those studying for the Certified Internal Auditor professional qualification, since it addresses the syllabus requirements of the Institute of Internal Auditors and the Standards for the Professional Practice of Internal Auditing and Competency Framework for Internal Auditors. The inclusion of the IDEA© CD with the educational case study is an added bonus, exposing students to a hands-on application of CAATs.
The book represents a practical integrated approach to the Institute of Internal Auditors’ recommended internal audit approach, and how this approach can be implemented within an internal audit department in a cost-effective manner. Accordingly, it may be useful as a practical reference manual during internal audits.
Table of contents: label: 1
title: Contains an introduction to the theory of internal auditing, including its origins, history and development in South Africa, together with the emerging role of internal auditing globally.; label: 2
title: Explores the structure and authority of the International Standards for the Professional Practice of Internal Auditing as laid down by the Institute of Internal Auditors Inc., together with the process to be followed to become a certified internal auditor and to qualify for the advanced specialist certifications.; label: 3
title: Deals with internal audit quality issues and quality assurance reviews.; label: 4
title: Contains an introduction to the theories and practice of business and professional ethics, and to issues surrounding the resolution of ethical dilemmas in the modern world.; label: 5
title: Deals with the types and legal forms of business organizations that can be found and the role of performance objectives in achieving management’s strategic goals.; label: 6
title: Covers risk assessment processes in an organization in some depth.; label: 7
title: Deals with various recognized control frameworks.; label: 8
title: Discusses the principles underlying the nature and quality of audit evidence required by an internal auditor in order to form a professional opinion.; label: 9
title: Discusses communication, which is a critical skill necessary for all organizations if they are successfully to implement their strategies; no less so for an internal auditor, whether conducting an audit, reporting findings or following up on the implementation of recommendations made.; label: 10
title: Strategic management is explained, together with the forces acting on an organization in a competitive environment.; label: 11
title: Explores the impact of cultural issues on international business, together with the impact of globalization on control structures and that of corruption and political instability on international trading.; label: 12
title: Strategies are implemented through appropriate organizational behavior, and Chapter 12 looks at this, together with the contingency approach to organizational behavior and the management of conflict within an organization.; label: 13
title: Examines the role and skills required of a modern manager, together with the basic concepts behind motivational theory and behavior modification. The importance of the manager in building staff competencies cannot be overestimated, and this chapter explains the role of management in these areas.; label: 14
title: Change and globalization lead to stresses within organizations and result in the need for effective negotiations, which are discussed in Chapter 14.; label: 15
title: Discusses the potential roles of auditors in carrying out various types of audits, including compliance audits, performance and operational audits, environmental audits, financial audits, quality audits, fraud audits, program results audits and IT audits. In addition, the chapter discusses the impact on the type of audit when conducted in the public sector versus the private sector; label: 16
title: Deals with the processes involved in conducting an audit and the detailed steps required to undertake each process. It identifies the critical success factors and the appropriate internal audit measurement criteria. It also examines the critical role and nature of working papers, together with the design of an appropriate preliminary outline audit program. Critical to the success of internal audit, the identification of control objectives and the associated controls intended to achieve those objectives is covered in depth in Chapter 17.; label: 17
title: The chapter also reviews the selection of appropriate controls for testing and appropriate testing methods.; label: 18
title: Outlines the process of planning each audit, together with the factors affecting planning decisions and the carrying out of the audit. It then reviews the role of the audit supervisor in planning and conducting an engagement, together with the overall nature and role of internal audit quality evaluation and effective service delivery. Having conducted an excellent audit, poor reporting and follow-up can destroy the effectiveness of the process.; label: 19
title: Sets out the principles of audit reporting and follow-up in order to achieve the effective communication of findings and the implementation of recommendations.; label: 20
title: Explores the use of appropriate audit engagement tools, including statistical and quantitative methods.; label: 21
title: Covers corporate governance developments nationally and internationally and the various relationships and roles of the board, the audit committee, and internal and external auditors in achieving sound corporate governance in an organization; and implications for resourcing or outsourcing the internal audit function.; label: 22
title: Covers the role and possible responsibilities of an internal auditor in the financial reporting process.; label: 23
title: Covers why a knowledge of aspects of cost and managerial accounting principles are important to internal auditors and the circumstances in which this knowledge will be used in the conducting of an audit engagement.; label: 24
title: Discusses the impact of increasing government regulation on the business environment and on the work of internal auditors performing compliance audits, as well as the circumstances in which this will be encountered.; label: 25
title: Deals with the impact of IT on an internal auditor’s work and its impact on risk, control objectives and audit objectives. It includes a definition of the range of IT audit services offered by internal audit.; label: 26
title: Explains the distinction between general controls and application controls in order to understand how to develop an appropriate audit program to evaluate their adequacy and effectiveness.; label: 27
title: Examines the process of developing systems and explains the differing potential roles of an IT auditor in this process.; label: 28
title: Discusses the variety of computer-assisted audit techniques (CAATs) and their use, and provides a hands-on lesson in the form of a case study using the educational version of IDEA© included with the book.; label: 29
title: The major IT security risks are identified, together with the selection of the appropriate control mechanisms available.; label: 30
title: Discusses the availability of back-up and alternative systems for an organization’s business continuity plan, and an internal auditor’s role in advising on and testing an organization’s disaster recovery plan.; label: 31
title: Concludes the section by examining the growing role and risks inherent in the use of the Internet for e-commerce and other business purposes.; label: 32
title: Discusses the nature and concepts underlying fraud, irregularities, waste and abuse of corporate resources.; label: 33
title: Describes fraud indicators and common red flags that may indicate the presence of fraud.; label: 34
title: Deals with the role of a forensic fraud examiner and investigator in the South African legal context, including the conduct of forensic interviews and the use of the polygraph.; label: 35
title: IT fraud investigation is dealt with, as is the current legal basis for the acceptance of computer evidence in court proceedings