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Internal Audit

An Introduction

Vernon H. BenjaminInternal AuditorRoom 324 Ext. 3018

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IIA Statement of Responsibilities

Purpose: Internal auditing is an independent

appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

The objective of internal auditing is to assist members of the organization in the effective discharge of their responsibilities.

The audit objective includes promoting control at a reasonable cost.

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The Purpose of Internal Auditing

to help you meet your goals and objectives to assess and monitor risks to ensure that

the controls in place are adequate to mitigate those risks

to act as a cornerstone —along with the board, senior management, and the external auditors, Internal Audit can help you comply with policies and regulations for enhanced corporate governance

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Services provided…

Assessments Analyses Advice Assistance

A proactive approach to ensuring sound operating procedures

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How Internal Audit can help you…

objectively assess your operations share ideas for best practices provide guidance for improving controls,

processes, procedures, performance, and risk management

suggest ways for reducing costs and enhancing revenues

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The Audit Process Model

Internal Audit Knowledge and Skills

Computers, Software and IIA Standards

Time and Money

Reputation for Integrity

and Fairness

Internal AuditPractices andProcedures

Analyses, Appraisals,

Recommendations, Counsel and Information

Promote the Effective use of Internal Control

Supporting the Organization in

the Discharge of their

Responsibilities

INPUTS PROCESSES OUTPUTS OUTCOMES

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Internal AuditFramework

Planning

Performing

Reporting

AUDIT ASSIGNMENT

AND OBJECTIVE

RESEARCH

PRELIMINARY SURVEY

RISK ASSESSMENT

DEVELOP AUDIT PROGRAM

FIELDWORK (TESTING)

DISCUSS CONCLUSIONS

DRAFT AUDIT REPORT

Phase I: Planning the Audit

Phase II:Performing the Audit

Phase III: Documenting the Audit

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Internal Audit‘s Role at Lexington

“Advocate” “Risk manager” “Controls consultant” “Problem-solving partner” “Facilitator”

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Building Trust with Auditee

The slow way- Making and keeping commitments

The faster way - Collaboration.

QUESTIONS??

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