These 10 provisions would truly insulate internal auditing
from organizational and executive pressure to subordinate their professional opinions and independence regarding the ethics, propriety, and soundness of organizational practices and activities.
* The purpose, authority and responsibility of the internal auditing
department is defined in a charter that is approved by senior management and the board of directors and assessed by the director of internal audit.
Many readers will be surprised to learn how far internal auditing
has evolved and how sophisticated the function has become in many larger organizations.
But for internal auditing
, companies shouldn't wait to be told what to do.
When implementing internal auditing
, a company would naturally look to the auditor's experience and expertise for input, alternatives and recommendations.
is no longer just a soft landing for the public accountant moving into industry; it has a challenging agenda all its own.
For example, the audit committee review of the appointment or replacement of the senior internal auditing
executive is intended to provide the same measure of independence from excessive influence by management as the audit committee recommendation of an external audit firm provides to the external auditor.
Based in Menlo Park, Calif., Protiviti is a recently formed subsidiary of Robert Half International specializing in outsourced and co-sourced internal auditing
and risk consulting services.
The PPF includes a definition of internal auditing
as well as the IIA Code of Ethics, Standards for the Professional Practice of Internal Auditing
, practice advisories, and development and practice aids (see Exhibit 1).
Revolutionary changes in the auditing profession in recent years are included in the newly published Standards for the Professional Practice of Internal Auditing
, released by the Institute of Internal Auditors.
is being reengineered because of a number of important changes in the general business environment.
Since evaluating and recommending improvements in the entity's system of internal control is the primary purpose of internal auditing
, the reporting responsibility should be placed there.