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Proposal

The document discusses internal auditing and its role in organizations. It provides background on the evolution of internal auditing and how it draws from fields like management consulting and public accounting. To be effective, internal auditors require independence from management so they can evaluate activities and personnel objectively. The document then discusses the obligations of independence for internal auditors, including how the chief audit executive must report and communicate. While internal auditing education has been debated, it is now flourishing in many universities. The document concludes by defining internal auditing's role in adding value, improving operations, and advising management and boards of directors through independent, objective assurance and consulting activities.

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Fred Van Vick
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59 views3 pages

Proposal

The document discusses internal auditing and its role in organizations. It provides background on the evolution of internal auditing and how it draws from fields like management consulting and public accounting. To be effective, internal auditors require independence from management so they can evaluate activities and personnel objectively. The document then discusses the obligations of independence for internal auditors, including how the chief audit executive must report and communicate. While internal auditing education has been debated, it is now flourishing in many universities. The document concludes by defining internal auditing's role in adding value, improving operations, and advising management and boards of directors through independent, objective assurance and consulting activities.

Uploaded by

Fred Van Vick
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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RESEARCH PROPOSAL

1. BACK GROUND OFTHE STUDY

The Internal Auditing profession evolved steadily with the progress of


management science after World War II. It is conceptually similar in many ways to
financial auditing by public accounting firms, quality assurance and banking compliance
activities. Much of the theory underlying internal auditing is derived from management
consulting and public accounting professions.

To perform their role effectively, internal auditors require Chief Audit Executives
and organizational independence from management to enable unrestricted evaluation of
management activities and personnel. Although internal auditors are part of company
management and paid by the company, the primary customer of internal audit activity is the
entity charged with oversight of management's activities.

The Internal Auditor's obligation of Independence


 The reporting line or status of the Chief Audit Executive {CAE} must report to a
level within the organization that allows the internal audit activity to fulfil its
responsibilities
 The chief audit executive must confirm to the board, at least annually, the
organizational independence of the internal audit activity.

 Attitudes of auditors, procedures of the internal audit department. The internal


audit activity must be free from interference in determining the scope of internal
auditing, performing work, and communicating results.
 Communication right. The chief audit executive must communicate and interact
directly with the Board of Directors.

Though demands to teach internal auditing have now been made for over a
generation, at present, internal auditing as a university discipline is in a serious decline.
Indeed, the roots of the debate on internal audit education were recorded in THE
ACCOUNTING REVIEW in the 1950s, and much of what is being said now is a restatement
of old arguments. The principal issue of debate has been whether internal auditing should be
taught. Internal auditing is now flourishing in many universities around the world. This
article suggests a number of reasons for its success, and questions established assumptions
about internal audit education. Therefore the assumptions ended up being a fact, currently is
an engine for private and public institution’s growth and development

Internal auditing: is 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 enterprise risk management, internal control and corporate
governance processes. Internal auditing is a catalyst for improving an organization’s
effectiveness and efficiency by providing insight and recommendations based on analyses
and assessments of data and business processes. With commitment to integrity and
accountability, internal auditing provides value to governing bodies and senior management
as an objective source of independent advice. Professionals called internal auditors are
employed by organizations to perform the internal auditing activity.

The scope of internal auditing within an organization is broad and may involve topics such as
the efficacy of operations, the reliability of financial reporting, deterring and investigating
fraud, safeguarding assets, and compliance with laws and regulations.

Internal auditing frequently involves measuring compliance with the entity's policies and
procedures. However, internal auditors are not responsible for the execution of company
activities; the Internal auditing professional standards require the function to monitor and
evaluate the effectiveness of the organization's Risk management processes. Risk
management relates to how an organization sets objectives, then identifies, analyzes, and
responds to those risks that could potentially impact its ability to realize it’s objectivise
advise management and the Board of Directors or similar oversight body

2. STATEMENT OF THE PROBLEM

Most business and non business organisations have grown enormously


and operations are becoming complex .These organisations employ
thousands of workers or employees/persons and operations from various
locations to ensure the efficiency and profitability of the organisations.
Due to the complexity, it has become necessary to employ different
techniques of control to ensure better management of their organisations
and them major is the auditing
The internal auditing helps the organisations to carry out examinations
and appraisal of the activities to ensure proper decisions and achievements of
the organisation’s goals .However some managers does not participate, this is
due to the fact that they ignore the importance /contributions of internal
auditing in the organisation .

The internal auditing existing not while in some others do exist, the internal
auditing can only be effective if the auditor performs his duties as required and
remains independent thought his duties as an auditor

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