1. INTERNAL AUDITING
ACC 4031
ACC4031 Sherliza 1

2.  The Definition of Internal Auditing states the
fundamental purpose, nature, and scope of
internal auditing.
 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 risk
management, control, and governance
processes.
Definition of Internal Auditing
ACC4031 Sherliza 2

3.  With the existence of an internal audit
function, the management of an
organisation may delegate to it some of it
supervisory roles
 IA function constituted a separate
component of internal control
Brief history of Internal
auditing
ACC4031 Sherliza 3

4. Brief history of Internal auditing
1950 • Check account records
1960 • Assess compliance
1970 • Examine procedure
1980 • Evaluate controls
1990 • Report to system of internal control
2000 • Assess risk management
2001 • Facilitate risk management
2002 • Assure risk/control
2010 • ??
ACC4031 Sherliza 4

5.  Being objective in determining whether
internal controls were well planned and were
operating as planned
 Independent reviews to ensure that
operations were efficient and effective
 Assisting management in timely identification
of business risks and help to act upon them
 Monitoring internal control are appropriately
aligned with a diverse and increasingly
complex field of corporate uncertainty.
Roles
ACC4031 Sherliza 5

6.  The executives - appoint managers and
staff to undertake the work carried out by
the organisation
 Separation of ownership from
management means some form of
accountability must be established to
ensure that the executives and staff
discharge their responsibilities to owners
and stakeholders
Separation of ownership
ACC4031 Sherliza 6

7. How does internal auditing assists external
auditors in their audit planning?
What can you say about the internal audit’s
evolving role in recent years.
Discuss and submit a group written
exercise by next class.
ASSIGNMENT
ACC4031 Sherliza 7

8.  Internal audit practices in
Malaysia, Pearson-Prentice Hall
 The Internal Auditor at Work, IIAM
References
ACC4031 Sherliza 8