Internal Auditing * Gives you insight into compliance issues, risk assessment, fraud prevention, corporate governance, IT auditing, and many other topics, plus summaries of current audit research, case studies, and feedback on new initiatives and standards from COSO, the Institute of Internal Auditors (IIA), and other organizations. * An independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Differences
Mandate:
Although Internal Audit does have a degree of focus on the financial aspects of the organisation, it is essentially not a financial discipline - unlike its counterpart External Audit. Its multidimensional nature mandates a much broader scope in the organisation than that of External Audit. * EAs have a statutory obligation to shareholders and the public on the accuracy of the annual report and the financial statements * IAs has a duty to senior management and the board via the audit committee on the state of governance, risk management and control within the organisation.
Areas of Focus: * EAs focus on finance and accounting * IAs focus on the whole organisation, all departments, functions and operations
Independence:
* EAs are independent external assurance providers to the organisation and have a statutory obligation * IAs is part of the organization but independent of management, they provide internal audit assurance and report to the audit committee.
Risk and Control: * EAs identify risks and assess controls over financial reporting and place reliance on controls to the extent practicable. Emphasis is on gaining sufficient audit evidence to conclude that