d. Professional education & training.
Is an independent, objective assurance &
Training to increase knowledge in assisting the
BOD to achieve the cos goals.
To influence the BOD & AC on recommendation
to improve the goals.
e. Professional discipline (ISPPIA) framework.
Includes code of ethics & ISPPIA to earn trust &
confidence from the shareholders/stakeholders on
the reliability & effectiveness of audit activities.
Governs ethical behaviour such as integrity,
confidentiality, objectivity & competency .
f. Direct reporting channel to AC.
Strengthen the role of IA.
Secure the support from BOD/AC.
Enforce recommendation.
g. Awakening of shareholders activism.
Demand from the shareholders.
The IA convince the shareholders that the BOD
are acting in the best interest of the co .
h. Support & recognition by th e regulators as stated in
MCCG (2007)
1. Reporting responsibility
IA to BOD/AC
EA shareholders
2. Objectives
IA depends on mgt
EA financial statement show true & fair view
3. Role & duties
IA determine by mgt
EA determine by companys Act & statute
4. Status
IA employee of the co
EA independent from the co
5. Responsibility
IA evaluating, examining the effectiveness of the
governance, control & risk mgt processes
EA expression of opinion by independently
reporting of financial statement by the mgt
6. Fraud
IA all types of fraud
EA material fraud
7. Professional qualification
IA not necessary (CIA)
EA compulsory being the member of MIA to get
audit licence
a. Global audit scandals.
Pressured from the public, demand for
sound risk mgt & control processes.
b. Commitments of IIA.
Continuous development in the quality
of IA function.
c. Brand scope of IA functions .
To add value to the organization as to
meet the changing demands of the
shareholders & stakeholders.
Discuss how internal auditors assist mgt to
fulfil their responsibilities in respect of risk
mgt. (10 marks)
Factors of re-
imaging of the IA
Definition
CHAPTER 1
Development of the
Profession of IA
Differences Types of IA
between IA & EA
Information technology audit
Involves an independent appraisal & testing
of the IT system through the various stages of
design, development & installation.
Control self-assessment audit
Involves sharing of audit re sponsibility with
mgt in evaluating their stage of controls &
level of risk exposure. The IA would provide
the necessary trai ning to the mgt by
establishing a problem solving partnership.
Financial audit
Involves an examination of financial planning
& reporting process, the conduct of financial
operations, the reliability & integrity of
financial records, & the appraisal of the
controls relating to financial functions.
consulting activity designed to add value &
improve an organizations operations.
It helps an organization accomplish its
objectives by bringing a systematic,
disciplined approach to evaluate & improve
the effectiveness of risk management control
& governance process.
(Explanation page 2 & 3)
Assess CG process and make recommendation
in achieving the objectives of CG which are
a. Promoting appropriate ethics & values
within the organization,
b. Ensuring effective organizational
performance mgt & accountability,
c. Communicating risks & control info to
appropriate areas of the organization
effectively, &
d. Effectively co -ordinating the activities of
& communicating information among the
board external & interna l auditors & mgt.
Operational audit/ performance audit/value
for money audit.
Involves an examination of the control
procedure in the organization to determine
whether the control procedures are
functioning effectively & efficiently to
achieve the objectives of the org.
Program audit/performance audit/ mgt audit
Evaluate whether the objectives of the
project have been achieved & whether a
alternative approach can e achieve at a lower
cost.
Fraud Audit
Involves a proactive & methodology to audit
for evidence of fraud.
Ethical business practices audit
Determines the extent of compliance with
established codes of conduct, policies &
standards of ethical practise.
Compliance audit
Determines the extent of compliance with
applicable rules which may originate
internally such as corporate by-laws, policies
& procedures, or externally such as laws &
regulations.