Internal Audit

Statutory and internal audit though have differences in object but are both geared towards value enhancement. Internal audit assures the board of directors of the effectiveness and efficiencies of governance, risk management and internal control put in place to achieve overall organization’s objectives while statutory (external) audit assures the shareholders and the public of the financial report of organizations upon which the stakeholders make informed decisions.

This doctoral dissertation includes five related working papers that provide valuable contributions to the understanding of internal audit (IA) and its effectiveness. Paper 1 is a literature review that uses the perspective of new institutional theory as a framework and acknowledges that IA effectiveness is largely still viewed as a “black box” that is under-explored in academic research. Paper 2 is an explorative work that studies the variables that are theoretically associated with the IA function’s active role in corporate governance. This paper was published in the Journal of Applied Accounting Research (JAAR 2012). Paper 3 is a conceptual essay that discusses the status of IA as a profession and questions why the IA profession has not generally been seen as playing a significant role in the financial crisis, either as part of the problem or as part of the solution. This paper was published in the Managerial Auditing Journal (MAJ 2012). Paper 4 is an empirical survey that clarifies the discriminatory power of characteristics suggested by practitioners and academic research that may indicate IA effectiveness. Paper 5 is a qualitative research paper that breaks new ground in applying role theory (Kahn et al. 1964) in combination with the theory of relational coordination (Gittell 2006) to the research context of IA effectiveness. This dissertation builds on an exhaustive literature review, provides a mix of different methods and perspectives and offers innovative and complementary insights that open the door for further research.

This Paper is review of scientific journal by Halid Saino and Syed Iskandar Zulkarnain from Universiti Teknologi MARA, Pahang Malaysia, titled "Dysfunctional Audit Behaviour: The Effect of Budget Emphasis Leadership Behaviour, and Effectiveness of Audit Review”. This review presented in bahasa indonesia.

The objective of our paper is to contribute to the accounting education literature by demonstrating that there are significant differences among final year undergraduate accounting students in the United Kingdom, Australia, India, and Malaysia with respect to an important concept in auditing, namely, perceptions of external auditors’ independence. To attain this objective, we make an original contribution to accounting cross-cultural studies by operationalizing culture in terms ofindependent and interdependent construals of selfhood. These fundamental core cultural differences are important because they play a major role in regulating psychological processes including perceptions. Additionally, to gain insight into the evolving complexities associated with understanding culture in a global economy, the concept of acculturation is invoked in hypothesis formulation. We find support for the hypothesis that students from countries with greater political, economic and socio–cultural inte...

Corporate risk management governance and management frameworks, approaches and practices face a variety of challenges and in many cases need to be reviewed and revised to copy with multiple uncertainties, disruptive technologies, new markets, business models, relationship, forms of organisation and areas of unpredictability. Systematically reviews issues and questions that need to be addressed from a board perspective in various risk arenas. Published  as: Coulson-Thomas, Colin (2017), Risk Governance and the Board, Director Today, Vol. III Issue II, February, pp 49-55

According to the South African Small Business Act No. 102 of 1996 Small Medium and Micro Enterprises (SMMEs) are regarded as separate small business entities owned by one or more owners; operating in various sectors of the national economy. SMMEs play a significant role in contributing to the South African economy, particularly by means of providing employment opportunities and assisting in the equal distribution of wealth. Albeit the latter prior research reveals that 80% of SMMEs do not survive beyond their first five years of existence. Plausible reasons for the latter include the influence of micro-economic factors and macro-economic factors; resulting in direct, inevitable risks being placed on the overall existence of SMMEs. In order to identify and manage these risks, SMMEs need to make use of adequate risk management strategies. More often than not a risk management strategy should eliminate and/or mitigate risks and provide reasonable assurance that business objectives will...

The purpose of this study was to determine and analyze the effect of role ambiguity, role conflict and auditor competence on auditor independence and internal audit quality as well as the effect of auditor independence and audit planning on internal audit quality. It is also to empirically analyze the mediating effects of auditor independence and audit planning in the relationship between independent variables to dependent variable of internal audit quality. The population of this research is auditor inspectorate in Central Sulawesi Province. Sampling used purposive sampling technique with a total of 202 samples. The data were analyzed using the Structural Equation Model (SEM) technique. The results showed that role ambiguity and role conflict had a significant negative effect on auditor independence, but did not significantly affect the quality of internal audit. Auditor competence has a positive effect on auditor independence and internal audit quality. The findings also pointed out that auditor independence and audit planning have a significant positive effect on internal audit quality. Statistical testing of mediating variables showed that auditor independence mediates the relationship between role ambiguity and role conflict and the quality of internal audit. Likewise, mediating variables of auditor independence and audit planning have empirically proven to strengthen the effect of auditor competence on the quality of internal audit.

Dit artikel behandelt enkele resultaten van vier casestudies naar de gevolgen van de invoering van corporate governance regelgeving voor internal audit in de afgelopen tien jaar. Internal audit staat in de belangstelling en lijkt aan belang te winnen. Bij de vier organisaties is nagegaan hoe het zit met het bestaansrecht van internal audit, de organisatorische positie, het ‘make or buy’-vraagstuk,

The requirements of ISO 15189:2003 are discussed in the context of a process and outcome based quality management model in which the user?s needs are the central focus. The requirements of ISO 15189:2003 are examined in terms of organization and a quality management system and stress the importance of evidence, document control and control of records and clinical material. Examples are provided from the areas of resource management, pre examination, examination and post examination processes. In the final section the importance of evaluation and continual improvement is presented in relation to internal audit and external assessment, non-conformity, corrective and preventative action and management review.

The purpose of this study is to direct interest in using the sound methodology in cost management and to choose a more effective approach to managing costs from a series of alternatives in order to obtain more accurate data on the cost of the product. Competition in the market, Clarifying the role of the time-based product life cycle costing technique in providing integrated information on resources and their costs and for each stage of the product life cycle, which would contribute to managing costs throughout the product life cycle. To achieve this goal, the time-based product life cycle costing technique was applied on data obtained from the laboratory records, the research sample, as well as the field experience. The research reached several conclusions, the most important of which is that the failure of traditional cost systems to meet the requirements and objectives of management as they are no longer able to provide accurate data that help the administration in making decisions as a result of changes and developments in the business environment, most notably the intense competition, which resulted in the emergence of modern techniques in the field of management Cost that is able to keep pace with these changes and developments. The most important of which is the time-based product lifecycle cost technique.

Primeiro: Como ele soube? A competência da Ouvidoria em denúncias é receber, triar, responder e encaminhar à apuração, em sigilo, e proteger os dados do denunciante, conforme Lei 13460/2017. (Jamais pedir informações ao denunciado.) Segundo: A ouvidoria jamais pode passar conteúdo, tampouco os dados do denunciante, que devem ser protegidos por 100 anos, conforme Lei 12527/2011 (LAI). (Se necessário, tarjar ou reescrever o conteúdo para passar adiante.) Terceiro: Em denúncias, a Ouvidoria apenas: (1) arquiva se não houver elementos mínimos; ou (2) passa às áreas de apuração. (Auditoria, se for problema de gestão, ou Corregedoria, se disciplinar.) Quarto: Na apuração, primeiro se fará uma verificação preliminar sigilosa. Se houver indícios, se abrirá processo formal pra investigar. Quinto: Se for sobre gestão, a Auditoria ou TCE será sigilosa até sua conclusão, baseada em fatos e dados, não em depoimentos. (O denunciado saberá quando sair o relatório e for notificado a justificar-se sobre os achados.) Sexto: Em caso de Sindicância ou PAD, o servidor saberá quando for notificado no processo, quando passa a ter direito a contraditório e ampla defesa. (Antes disso nunca, pois não existe processo.) Sétimo: Se o processo (auditoria, TCE, Pad, Sindicância) concluir que não houve nada, sendo auditoria, o servidor nem precisava mesmo ficar sabendo, só iria se incomodar à toa. Sendo Sindicância ou PAD, e se não der em nada, ele já estará se defendendo. Oitavo: Quando tomar ciência e, ao final, se sentir-se ofendido pela denúncia, pode processar o denunciante, mas ele deve pedir na justiça a abertura dos dados. (Que por serem pessoais, a Administração deve proteger por 100 anos.) PORTANTO: A denúncia é sempre sigilosa, até sua apuração final (auditoria) ou abertura de Sindicância/ PAD. ASSIM: Na via administrativa, jamais a Ouvidoria, Auditoria ou Corregedoria pode passar dados de denunciantes, mesmo que suspeito de ma-fé. FINALMENTE: Identificada má-fé no início, a denúncia será arquivada e o denunciado nem precisava ficar sabendo.

Analyse électronique des données et logiciels spécialisés : les gros volumes ne font plus peur.
Il est aujourd’hui inconcevable pour les auditeurs et contrôleurs d’utiliser les méthodes de travail d’il y a seulement vingt ans. Si les contrôles portent toujours sur l’examen des faits, les volumes de données ne permettent plus de se contenter d’un examen superficiel des livres et des pièces comptables. Les contrôleurs et les auditeurs incluent donc l’analyse électronique des données qui peut se faire avec des outils logiciels courants.

In the current economic context marked by the relentlessness of the competition, the internal auditor is often called upon to put his skills at the service of organizations in order to control risks and evaluate internal control systems. Consequently, he contributes to the creation of value. The purpose of this paper is to analyze the theoretical foundations of internal auditing and their relationship with the value creation for organizations. Through a literature review on the contribution of internal audit to value creation, we found that the results of the majority of these papers supported a positively significant relationship. However, by conducting a critical analysis of models used, we demonstrated the methodological limitations that may bias these results. As a result, we have listed the limitations of traditional indicators of value creation (Return on Assets, Return on Equity, discounted cash flows, among others); thus, we have argued the superiority of the Economic Value Added (EVA), as a measure indicator of value creation through the inclusion of the cost of capital in its structure. Following these well-founded results, a subsequent study will be conducted to empirically test the contribution of internal auditing to value creation by integrating EVA as a measure of value creation.

The Covid-19 epidemic is going on as a serious health problem and threat. Indeed, it is also a devastating financial and economic problem. Unfortunately, the Covid-19 epidemic is causing many firms to shut down and go out of business. This triggers unemployment and instability in countries all over the World. The developed countries armed with higher funds are able to better support their citizens and businesses compared to developing and underdeveloped countries. All countries implement different measures to eliminate the several negative effects of Covid-19 epidemic, which has undesired reflections on numerous sectors such as the health, education, tourism, food & beverages and manufacturing industries. This paper argues that, the Covid-19 epidemic in fact has deeper reflections and it may be a new arena of financial fraud. Based on this research, citizens and governments must be extra careful about the new types of financial fraud observed as a result of the Covid-19 epidemic. Al...

При рассмотрении вопроса об эффективности того или иного вида деятельности, общепринятым содержанием этого понятия является соответствие достигнутых в процессе его осуществления результатов намеченным целям, степень приближения результата к цели с учетом затрат трудовых, материальных и финансовых ресурсов.
  (When considering the effectiveness of any activity, the generally accepted content of the notion is compliance achieved in the process of implementation of the outcomes of the goals, the degree of approximation of result to the objectives based on cost of labor, material and financial resources.)

Teknologi informasi dewasa ini sudah berkembang jauh lebih pesat dan mempengaruhi semua pekerjaan manusia. Dengan adanya teknologi, dapat menyebarluaskan informasi ke seluruh penjuru dunia tanpa harus bertatap muka secara luar jaringan. Untuk memudahkan penyebaran informasi beasiswa KJP Plus pada jangka waktu tertentu, salah satu langkah yang dapat dilakukan adalah melalui website KJP Plus. Penelitian ini dilakukan untuk mengevaluasi kualitas website KJP Plus dengan menggunakan framework WebQual 4.0 dengan domain usability, information quality, dan service interaction quality untuk menyesuaikan kebutuhan yang mendukung pengembangan website KJP Plus. Penelitian ini dilakukan dengan menyebarkan 15 pertanyaan yang dijawab oleh 40 responden dengan menghasilkan nilai Cronbach's Alpha sebesar 0.920. Hasil penelitian ini dilakukan untuk mengetahui pengujian indikator analisis untuk tahapan penelitian selanjutnya.

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The purpose of this paper is to critically analyze self-images of internal auditors in the light of the metaphors and short descriptions they give about their own role(s) in their organization. Worldwide data have been collected via a forum for internal auditors on LinkedIn where they were asked “If you were asked to write down a catch-line to sum up your role as internal auditors in your organization, what would it be?” The analysis distinguishes five clusters of self-images whereby some of these self-images could be self-inflicted pitfalls creating the wrong expectations and perceptions within the organization: (1) negative self-images that may create distance and form the basis of non-acceptance; (2) overly modest self-perceptions; (3) use of self-evident and empty words that could lead to marginalization in the eyes of internal auditors’ stakeholders; (4) overly ambitious claims, Superman-like, creating the basis for disappointment as internal auditors all too often over-promise and under-deliver. Eventually (5), we also find original and helpful self-images that point to positive characteristics and differences, which should help in creating a unique and sustainable identity, and also support internal audit’s pursuit of greater effectiveness. The analysis of how internal auditors view themselves may explain why some internal auditors are on a route to marginalization and disappointment, while others embark on a more promising path creating a positive, unique and sustainable identity as suggested by recent studies. Ultimately, we suggest that viewing internal auditors as farmers is a promising metaphor with which to position internal audit and strengthen its value proposition.

Internal Auditing is projected to be a declining job and is at a crossroads. On the micro level, in organizations and institutions, stakeholders may see less and less value in the contributions from Internal Auditing, and on a macro level, this projection jeopardizes the legitimacy and relevance of Internal Auditing as a profession. This presentation suggests five main fields of action and focus for the Institute of Internal Auditors in the US, its local chapters, internal auditors, and academia that can make the trend a friend again, and will determine the future role of Internal Auditing, its legitimacy, its relevance, and its organizational and societal significance. The purpose of this presentation is to provide comprehensive content suggesting five concrete paths for the betterment of Internal Auditing. The five directions that deserve development are planet, public, profession, prosperity, and people. Ultimately, positioning Internal Auditing as Gardener of Governance is a promising metaphor to strengthen its value proposition, both on a micro and on a macro level. Metaphors are an important way to convey ideas and make ideas stick.

In early 2009, the Ontario Ministry of Education decided to create and fund a new mandatory internal audit process for all school boards in the province beginning in September 2009 of that year. The 2010-11 projected cost of this initiative was $5 million. Since its implementation, Ministry of Education memos indicate that this new internal audit process has met with some difficulties. Academic literature suggests that internal audits can increase good governance, and provides economic value for an organization. However, a number of factors, such as those identified by principal-agent and resource dependency theories suggest that the effects of internal audits and the ways in which they are received can vary significantly. School boards, especially larger ones, may not share the same motivations and concerns as those of the Ministry in regards to the internal audit process.

This paper explores the reactions of Ontario school board officials to the internal audit function imposed on them in 2009. Specifically, it seeks to answer the following question: “What explains variation (if any) in Ontario school boards responses to recommendations by the regional internal audit teams to reform governance policies and processes”? Data for this research were gathered from an online survey conducted by the researcher and sent to employees at 59 Ontario school boards. It was expected that there would be a clear difference of opinion between larger and smaller school boards about the internal audit process. This, however, was not the case. Survey responses showed no major variation in opinions about this imposed function. Instead, school board employees across the province, like the auditors surveyed in other academic research, saw value in the internal audit process. Some respondents did indicate some frustration with the lack of resources to participate fully in the initiative. The Ministry’s recent appointment of an internal audit coordinator to help facilitate this process demonstrates that the problems with this mandated process may be the result of flawed policy implementation rather than a principal-agent conflict.

This report aims to develop a reference tool for the structure and function of internal audit (IA) within the education sector of the United States of America (USA). It begins by providing an introductory overview of IA, building on the contributions of Aston et al. (2017) in Public Financial Management: Audit and Compliance and Millichamp and Taylor (2012) in Internal Audit. By defining the function and role of IA, per the Institute of Internal Auditing (IIA), this study lays the foundation for the requirement of IA in the education sector. The interplay between external and IA functions is reviewed, exploring common misconceptions. The sector appears to have a reactionary approach to auditing needs, often emanating from criminal fraud. Cases in Los Angeles (CA), Roslyn (NY), Pattonsburg (MO), and Wake County (NC) demonstrate the sector is frequently reacting to a crisis, responding with additional regulation and policy that has an external bent. In contrast, a study by the Council of the Great City Schools (CGCS) (2017), proposes an adaptable framework for IA function in schools and districts. This review concurs with CGCS’s assessment that Internal Auditing offers school boards and senior management an independent and objective source of information that can help them identify the most critical operational and compliance issues preventing them from ultimately meeting their goals, making high-risk areas increasingly effective. This part concludes by developing a quick reference tool for school administration personnel: a checklist style table summarizing adoptable practices and protocols schools may utilize to improve their respective IA function, per the CGCS, IIA, and the Generally Accepted Government Auditing Standards (GAGAS).

This study into the impact of accounting information on managers bring to forth the huge burden financial information influences in the decision making of managers in diverse industries and fields in the world. The study begins with an introduction as well as problem statement and purpose of the study. The literature underpinning the study is further highlighted as well as the research methodology adapted. The forth section reveals some of major findings of the similar reviews conducted while the final section concludes the entire study.

Le attività di verifica ed audit, oltre a costituire un obbligo per i DPO, sono uno strumento di accountability per tutti i titolari e responsabili del trattamento. La normativa è particolarmente articolata, vasta, trasversale e in continua evoluzione: i pochi requisiti di conformità definiti in modo puntuale (ad esempio, il contenuto obbligatorio dell'informativa) coesistono con i molti la cui valutazione è lasciata alla responsabilità del titolare (ad esempio, le misure di sicurezza). Il volume descrive dunque il processo di audit nel suo complesso: la stesura di un piano di audit, la definizione di una metodologia di descrizione delle non conformità, la loro valutazione secondo diverse metodologie (quali ad esempio i modelli di maturità), la stesura di un audit report e la relativa valutazione complessiva. Dopo una presentazione delle caratteristiche dell'attività di audit e dei relativi standard e buone pratiche, il volume propone le metodologie per effettuare un assessment iniziale utile a individuare le aree a maggiore rischio di non conformità e a definire il conseguente piano di audit. Vengono proposte metodologie di verifica dei requisiti di conformità attraverso check list precostituite, suggerimenti su come costruire check list personalizzate ed altri strumenti utili nei documenti realizzati da enti, agenzie e autorità garanti, quali esempi di buone pratiche. Vengono descritti sia i punti di controllo di carattere generale, sia quelli specifici di ogni macro argomento trattato. Un breve capitolo analizza le varie figure coinvolte: chi può svolgere un'attività di verifica, le qualifiche che deve avere, le certificazioni esistenti per dimostrare le proprie competenze.

الرقابة والمراجعة الداخلية هي مجموعة متكاملة من الأنشطة والخطط والسياسات ومجهودات تبذل من الأفــراد فــي المنظمات أو مؤسسات الاعمال أو الشركات، كل ذلك يهدف في مجموعه إلى توفير حدا معقولا من التأكيدات نحو تحقيق أهداف تلك المنظمات أو المؤسسات أو الشركات، ويأتي على رأس تنفيذ عمليات الرقابة الداخلية الإدارات العليا، وغيرهم من العاملين من الموظفين والمهنيين، وهذه العملية مصممة لتوفير تأكيد معقول، ومنطقي، وفعال فيما يتعلق بتحقيق الأهداف، هنا نستطيع القول بأن مسألة الرقابة والمراجعة الداخلية هي مسئولية كل من يعمل في المنظمة أو مؤسسة الاعمال أو الشركة.

Mata kuliah Audit Syariah Lembaga Pengelola Zakat bertujuan untuk meningkatkan pengetahuan mahasiswa tentang audit Syariah yang meliputi: 
1. Mengetahui proses audit operasional/manajemen dari proses perencanaan, pelaksanaan dan pelaporan
2. Mengetahui ruang lingkup audit syariah sebagai bagian dari audit operasional
3. Mengetahui konsep Kepatuhan lembaga pengelola zakat terhadap pengaturan kebijakan syariah yang ditetapkan oleh pemerintah melalui kementerian agama dan baznas sebagai pihak yang mememiliki regulasi dalam pengelolaan zakat
4. Mengetahui proses audit syariah dari perencanaan, pelaksanaan dan pelaporan.
5. Dengan mempelajari mata kuliah ini, diharapkan mahasiswa akan mampu menjadi lulusan yang kompeten dan siap untuk bekerja dalam pengelolaan zakat.