Naslov
The Development of Modern Internal Auditing

Autori
Tušek, Boris

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
ICES 2006 International Conference of the School of Economics and Business in Sarajevo - From Transition to Sustainable Development: The Path to European Integration / - Sarajevo : Ekonomski fakultet Univerziteta u Sarajevu, 2006

ISBN
9958-605-89-9

Skup
ICES 2006 From Transition to Sustainable Development: The Path to European Integration

Mjesto i datum
Sarajevo, Bosna i Hercegovina, 12.10.2006. - 13.10.2006

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
management; internal auditing; internal audit process; audit planning; performance of audit work; audit reporting; follow up; risk based approach; internal audit profession in Croatia

Sažetak
Internal auditing is an important information source for managers operating on various levels, as well as support to achievement of set goals, and sustainable competitive advantage and capacity of the company. Internal auditing is “an independent, objective assurance and consulting activity that is 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 effectivness of risk management, control and governance processes.“ As distinguished from an audit of financial statements which is set towards the appraisal of relevancy and objectivity of financial statements and which is usually conducted by external auditors, internal auditing is set towards the appraisal and evaluation of internal controls and company's operations. Corresponding with the context of basic internal audit process terms of reference – internal auditing standards and code of ethics, accepting similarities and differences in their operation in theory and in practice, a fundamental phases of this iterative process are following: planning the audit, examining and evaluating information, communicating results and follow up. Planning consists of various activities, which have to be duly performed in order to ensure efficiency of the whole internal audit process. This phase of internal auditing includes defining audit objectives and scope of work, gathering of information about areas being audited, defining and allocation of required resources for the audit performance, development of audit programs etc. Internal auditor gathers and critically evaluates the information about the area being audited, by combining different approaches, methods and techniques (flowcharts, questionnaires, interviewing, narrative notes etc.). Internal auditors gather evidence to support the conslusions that they draw and their findings. After the completion of internal auditor’s working documentation with sufficient and relevant audit evidence, follows the reporting on results of internal audit review. The process of each internal audit must not cease upon the final report completion and distribution, but it has to follow up and review whether required activities took place in relation with disclosed results of each audit and whether desired results were achieved. Risk assessment is a continuous process that operates throughout the entire internal audit process. Due to usual audit resource limitations (time, finances, personnel) for the performance of internal audit, internal auditor has to focus on critical areas of company business. Internal auditor has to establish risk-based plans to determine the priorities and to focus on company areas and operations of high-risk. The general survey, in the first phase, enables obtaining of background information and understanding of company activities, business risks and control risk, while in the second phase it enables the final selection of auditable areas, allocation of audit resources and selection of audit procedures to be implemented for maximum efficiency and minimum audit costs. Having in view the development of entire auditing profession, countries of developed market-oriented economy, to which Croatia aspires as well, make a position of internal audit an important one. Having this fact in mind, The Section of Internal Auditors was established. Some significant results have beem achieved since founding the Section, which significantly contrubute to the development of internal auditors' profession in Croatia. Internal auditing has to develop ever new approaches to internal auditing, devise new auditing products and services, and help fulfill increasingly more complex demands that management nowadays faces. Related to that, it can be expected that internal auditing will be increasingly oriented towards the anticipation of risk in individual business areas, and towards advising the management on possibilities of risk management. This is achieved through shaping and surveillance of the appropriate system of internal controls whose activities will be preventive. The object of an internal auditor’s examination will become overall operations oriented towards the future.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA