Accounting & auditingLesson 1 of 1 in the course Auditing

Internal Auditing: Governance, Risk, Controls, and Professional Practice

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Internal auditing helps an organization improve how it operates while providing independent insight to those responsible for oversight. This lesson introduces the purpose, scope, professional foundations, and historical development of the function.

Internal auditing is an internally administered assurance and consulting activity designed to add value and improve an organization’s operations. It supports the organization in achieving its objectives through a systematic, disciplined approach to evaluating and improving risk management, control, and governance processes.

All flashcards

Internal auditing
An internal assurance and consulting activity that evaluates risk management, control, and governance to add value and improve operations.
Assurance work
Evaluation of evidence to provide an assessment of a process, control, or activity.
Consulting work
Advice and insight that leave decisions and execution under management’s responsibility.
Functional reporting
A reporting relationship that gives the board or audit committee oversight of key aspects of internal audit.
Five C’s of an audit finding
Condition, criteria, cause, consequence, and corrective action.

Quiz questions

  1. In a publicly traded U.S. company, which body typically provides functional oversight of internal audit?Answer: The board or its audit committee
  2. Which is one of the five components in the COSO Internal Control Framework?Answer: Risk assessment
  3. In the five C’s of an audit finding, which element identifies the requirement or benchmark that should have been met?Answer: Criteria
  4. In the Three Lines Model, which group owns and manages risks in day-to-day operations?Answer: Operational management and customer-facing teams
  5. Who typically proposes a risk-based internal audit plan for review and approval by the board or audit committee?Answer: The chief audit executive

Based on the Wikipedia article Internal audit, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.

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