Audit Committee and Internal Audit

NotesQuiz

Audit Committee & Internal Audit

As part of the overseeing internal controls the audit committee must also oversee the internal audit function

This time I want you to appreciate the difference between how an audit committee would deal with an external auditor compared to an internal one.

To make that distinction clear for your memory - understand that the internal audit department work for the same company as the committee.

They share the same goals therefore. In fact picture the internal auditor as one man only.

After all the head of IA is in fact appointed by the audit committee.

Remember though that he works for the same company as the audit committee.

So they like him. In fact they often say “We are Him!”.

This will help you memorise those key roles..

Key roles

  • W ork plan reviewed

  • E ffectiveness assessed

  • A ccountable for the Internal Controls

  • R ecommendations are actioned

  • E fficiency of IA ensured

  • H ead of IA appointed

  • I ndependence preserved

  • M onitor IA

NotesQuiz