Managing-the-internal-audit-activity.pptx

Managing-the-internal-audit-activity.pptx

1. Managing the internal audit activity

2. Chief audit executive IIA Standard 200 : The CAE should effectively manage the internal audit activity to ensure it adds value to the organization IIA Glossary of Terms: CAE as a person in a senior position responsible for effectively managing the internal audit activity in accordance with the internal audit charter and the Definition of Internal Auditing, the Code of Ethics, and the Standards.

3. Indicators of effectively managed internal audit activity The results of the internal audit activity’s work achieve the purpose and responsibility included in the internal audit charter The internal audit activity conforms with the Definition of Internal Auditing and the Standards The individuals who are part of the internal audit activity demonstrate conformance with the Code of Ethics and the Standards

4. Specific responsibilities IIA Standard 200 laid down the following: Planning Communication and approval Resource management Policies and procedures Coordination Reporting to the board and senior management

5. Planning CAE should: Establish risk-based plans Communicate it and the resource needed to senior management and the board for approval Develop policies and procedures Coordinate efforts with other service providers Report periodically to senior management and the board

6. Planning process Goals- risk-based plan should be consistent with this Engagement work schedule Staffing plans and financial budgets Activity reports

7. Communication and approval CAE should submit annually to the senior management and to the Board for approval: Summary of internal audit activity’s work schedule Staffing plan Financial budget Interim changes shall also be submitted

8. Resource management The CAE should develop a program that provides for: Developing written job descriptions for each level of the audit staff Selecting qualified and competent individuals Training and providing continuing educational opportunities for each internal auditor Appraising each internal auditor’s performance at least annually Providing counsel to internal auditor’s on their performance and professional development

9. Policies and procedures II A 2040 provides that the CAE should establish policies and procedures to guide the internal audit activity. Personnel Manuals- overall organization and its relationship to employees Audit or Technical Manuals- provide guidance on completing specific engagements in compliance with the technical standards and policies of the internal audit activity. Administrative Policy and Procedures Manuals- guidelines and standards for operation of the internal audit activity

10. coordination The CAE should share information and coordinate activities with other internal and external providers of relevant assurance and consulting services to ensure proper coverage and minimize duplication of efforts.

11. Reporting with the senior management and the board The CAE should submit activity repots to senior management and to the board at least annually.