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Total Quality Management (TQM) will have major implications for theinternal audit function. Argues that TQM concepts, such as peopleempowerment, are incompatible with…
Total Quality Management (TQM) will have major implications for the internal audit function. Argues that TQM concepts, such as people empowerment, are incompatible with traditional notions of compliance with prescribed internal controls, policies and procedures. Suggests that the fundamental principles which govern the practice of internal audit are incompatible with TQM environments. Examines a number of scenarios to assess the impact of TQM on the internal audit function. These issues may offer a basis for the conduct of further research.
Internal auditing assumes an increased responsibility for the evaluation of entity operations as a service to management and the board of directors. Quality assurance…
Internal auditing assumes an increased responsibility for the evaluation of entity operations as a service to management and the board of directors. Quality assurance review is the process through which assurance is obtained that the internal auditing department’s work is done in accordance with the Standards for the Professional Practice of Internal Auditing. This study examines the current practices of quality assurance review in South Africa. Although not all organisations surveyed do perform internal auditing quality assurance reviews, the organisations that do, benefit from them. Various methods are used in practice to perform internal and external quality assurance reviews. This study provides information on the processes and procedures used in quality assurance review programmes.
Provides an historical introduction to how internal audit took off in China. Acquaints us with the fascinating three theoretical models of the national role of internal…
Provides an historical introduction to how internal audit took off in China. Acquaints us with the fascinating three theoretical models of the national role of internal audit: the theory of two legs, the theory of two wings and the theory of supplement. Details the roles that internal audit may perform and ends with a prophetic forecast of the likely direction and development of internal audit into the new millennium.
Marks the 50th anniversary in 1991 of the Institute of Internal Auditors (IIA). Established in 1941 by a group of forward‐looking internal auditors, the IIA has given great impetus to the professional upgrading of internal auditors. Provides an overview of the evolving role of the internal auditor: tracing the ancient roots of the internal audit function; examining in detail the role played by the IIA in advancing the interests of the profession, and providing an outlook for the future. Concludes by observing that the role of the internal auditor will continue to expand at a rapid pace in the coming decades and beyond.
Internal auditing has transformed over the past twodecades from its beginnings as a financial enforcerto a respected member of the managementdecision‐making process…
Internal auditing has transformed over the past two decades from its beginnings as a financial enforcer to a respected member of the management decision‐making process. Internal auditors now are providing management with information of a broader range of company activities than they are used to. This transformation is far from over because of the nature of the auditor′s work and the perceptions of management and the public concerning audits. The function of internal auditors is not only to measure and evaluate the effectiveness, efficiency and economy of organisational activities and controls but also to participate with management in high‐level decision making. The partnership concept of internal auditing is needed to enhance the image and change the attitudes of management with regards to internal auditing in light of the increased demands and responsibilities of the new auditor. Students, internal auditors and management must be educated properly and trained for this partnership concept. By using the internal auditor as part of the management team and by offering more to management and assuming more risk, the goals of the organisation are more likely to be achieved effectively, efficiently and economically.
Agency theory is extensively employed in the accounting literature to explain and predict the appointment and performance of external auditors. Argues that agency theory also provides a useful theoretical framework for the study of the internal auditing function. Proposes that agency theory not only helps to explain and predict the existence of internal audit but that it also helps to explain the role and responsibilities assigned to internal auditors by the organization, and that agency theory predicts how the internal audit function is likely to be affected by organizational change. Concludes that agency theory provides a basis for rich research which can benefit both the academic community and the internal auditing profession.
Focuses on the functions and objectives of internal audit and the conditions necessary for them. Believes the basic function of internal audit is a special kind of…
Focuses on the functions and objectives of internal audit and the conditions necessary for them. Believes the basic function of internal audit is a special kind of economic control. In other words, internal audit itself is a special kind of control function over other controls within an organization. In addition, internal audit still has three sub‐functions, i.e. supervision, attestation and evaluation, which are essential to achieving the control function. Internal audit is an integrated part of the process of accountability; its general objective is to ensure and promote the effective performance of accountability assumed by the management of an organization. Identifies three important conditions necessary for achieving the functions and objectives of internal audit: independence, organizational status and objectivity.
This paper outlines the results of a survey designed to compare the opinions of internal auditors to one class of audit customers – namely management accountants. To…
This paper outlines the results of a survey designed to compare the opinions of internal auditors to one class of audit customers – namely management accountants. To function effectively, internal auditors and the customers of audit services should possess a similar understanding of what makes internal auditing a value‐added activity. Failure to reach this understanding could result in the perception that internal audit is simply an obstacle to achieving production objectives. This can result in underutilized audit services and ignored audit recommendations. Fortunately, internal auditors and management accountants have similar views, but there are a few areas of difference that should be addressed by internal auditors.
Gives examples of a number of organizations, committees, andcommissions which have promoted both internal auditing and auditcommittees during the past two decades…
Gives examples of a number of organizations, committees, and commissions which have promoted both internal auditing and audit committees during the past two decades. Explores the need for a close working relationship between the internal auditor and the audit committee. Examines: (1) the evolution of both internal auditing and audit committees; (2) the Treadway Commission recommendations regarding the importance and role of audit committees and internal auditors; (3) ways in which internal auditors can work with audit committees; and (4) benefits gained from this relationship. Shows how, recently, internal auditors have been transformed from a financial enforcer to a respected member of the management decision‐making process, and audit committees have also assumed more oversight responsibilities in the areas of financial reporting and internal control. Thus, a close and effective working relationship between the audit committee and the internal auditor will be beneficial not only to the company which they serve but also to society as a whole.
Discusses the development of internal audit theory and practice with reference to the Sino‐China Petrochemical Corporation (SINOPEC), a large, state‐owned petrochemical…
Discusses the development of internal audit theory and practice with reference to the Sino‐China Petrochemical Corporation (SINOPEC), a large, state‐owned petrochemical enterprise group. Examines the organizational status, authority and role of internal audit, and the question of independence. Notes the move from financial to managerial and operational auditing, identifying specific examples. Suggests future direction, which might include a closer relationship with state audit.