Internal Audit Basics - Certification

As per IIA : 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 process

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In this Video, I will try to explain qualities of a Internal Auditor.

The 3 lines of defence represent an approach to providing structure around risk management and internal controls within an organization by defining roles and responsibilities in different areas and the relationship between those different areas.

In this video, I will try to explain a typical Internal Audit process in an organisation and how actually you are supposed to perform Internal Audit for an organisation

Things you should keep in mind while preparing an Internal Audit Plan:

1. Hot spots/ Risk surveys done by some big advisory firms ( Easily available on Internet)

2. Previous audit plans, to understand ageing( Since when a function is not audited)

3. Check previous audit reports (Function with high risks should be frequently audited as compared to low risk functions)

4. Attrition rate ( More attrition = More risk)

5. Discuss with HODs for their inputs

6. Discuss with Risk team for Inputs (In some organisation risk and audit are part of same department)

7. Regulations ( Some of the regulatory audits are obviously part of your audit plan)

8. Top business carrier(Topline , bottom line , Mazor expenses)

9 Size of your team/budget …

Things you should keep in mind while preparing an Internal Audit Plan:

1. Hot spots/ Risk surveys done by some big advisory firms ( Easily available on Internet)

2. Previous audit plans, to understand ageing( Since when a function is not audited)

3. Check previous audit reports (Function with high risks should be frequently audited as compared to low risk functions)

4. Attrition rate ( More attrition = More risk)

5. Discuss with HODs for their inputs

6. Discuss with Risk team for Inputs (In some organisation risk and audit are part of same department)

7. Regulations ( Some of the regulatory audits are obviously part of your audit plan)

8. Top business carrier(Topline , bottom line , Mazor expenses)

9 Size of your team/budget …

Certifications for Internal Audit Professionals:

CIA : https://na.theiia.org/certification/CIA-Certification/Pages/CIA-Certification.aspx

CISA : https://www.isaca.org/credentialing/cisa/get-cisa-certified

CFE :https://www.acfe.com/membership-certification.aspx

In this lecture You will learn how to use AI in IA (Internal Audit)

5 Myths about Internal Audit :-

1. Internal Audit is a burden(cost centre) on company : A well organised Internal audit function is boon for any company

2. Internal Auditors are only fault finders : Internal auditors are watch dogs. They not just find faults but also provide solutions for the process lapses.

3. Internal Audit is an easy Job : Try it and you get to know! check link in first comment for details on this one.

4. Internal Auditors revolves around finance only : Internal audit basically covers each and every aspect of the organisation. If you are keeping yourself limited to finance, then probably you are not exactly doing internal Audit

5. Internal Audit is a low paying job profile : No. It isn’t. If you are into core internal audit then you won’t find yourself under paid.

These are some practical Internal Audit Tips I encountered in my career, Hope these tips will help you as well in your journey

In this video, I will  discuss about types of auditee you may come across during your IA journey.

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