The internal audit is an essential and now much discussed part of business, the institute of internal auditors an international association of internal auditors, offers this definition - “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 processes.” to this end internal auditing furnishes staff with analyses, appraisals, and recommendations relating to these activities Internal audit is a service its functions include examining and evaluating internal control and providing assurance to the management. It is a part of the organizations system of internal control and its scope includes .all aspects of internal control. Not just financial control. The scope of internal audit is much wider than external audit. It ideally covers all the organizations activities,
Although internal and external auditors have different and clearly defined roles they do share the same broad purpose of serving the public by helping to ensure the highest standards of regularity and propriety for the use resources and in promoting efficient effective and economic administration,
That would be helpful for management for understand and realize the company present position & situation so that an internal auditor can attentive the management about house organization, The internal auditor may be contracted to perform additional tests to determine whether such policies and procedures are operating effectively within the service organization.
B/2. Executive Summary of “WAK” Model:
This “WAK” model discus the internal auditing process for the professional auditors. Internal auditor provides information that helps people in business increase their chances of making decisions that will benefit their companies. Auditing is the language of business, and like other languages, it has its own terms and rules. Understanding this language and learning to interpret it is your first step to becoming successful in your own business and in your personal financial life as well.
In your personal life you can use business information to make decisions through internal auditing. About investing in the business, applying for a loan, and evaluating potential jobs. Banks use Auditing information auditing to make decisions about granting loans. Government agencies base their regulations on Auditing information.
Auditing information can even be useful to non-business entities with an interest in how businesses affect local, national, or foreign communities and community members. Businesses use auditing information for planning and budgeting and for making decisions about borrowing and investing.
Overall, Auditing aids businesses in the process of making better decisions. The basics of Auditing are the same regardless of the size or type of business. In this “WAK” model you will learn through the examination of a desire small business, for more complex businesses, the economic transactions become more varied and complex as does the process of reporting them to various users.
The foundation of it all, however, remains the same. This “WAK” model will give you a solid foundation you will be able to use in any business situation you encounter. Whether you own a business or do not, even if you’ve never had any experience with auditing I think this is the perfect model for you. I hoping that you will find from this “WAK” model useful in helping you to understand these auditing issues as they apply to your small business and to your personal life.
(C.) solution of Internal audit process!
The internal audit responsible for planning and implementing Individual audits, and for the overall internal audit plan. This includes defining the scope and resources required for an audit, establishing the methodology and approach, and delegating Specific responsibilities for the overall adequacy, quality, and reporting of such audit activity and the corridor to solution in actuality is
Solution = Wish > abilities > knack (WAK)
Wish > abilities > knack (WAK) = Solution
That means if you use your wishful ness from of the heart you can gain an actual ability, and apply this gain ability you can able to done your mission smoothly, also through your ability you can show your working knack, and that is the only path of internal auditing solution,
C/1.WISHFUL: I think wish means a frame or express desires concerning; to invoke in favor of, or against, any one; to attribute, or cal down, in desire; to invoke; to imprecate, Almost all human beings do have something to ask for from Almighty Some have a craving for some lawful worldly objects, some have to ask for solutions of their problems, some longing for remedy of illness and getting good health, while some have the far-sight of asking favors of the next world. Thus every one has something to ask from his/her own angle of view.
Only wish could make a man to achieve his goal, every man has his own dream and to make that happen he must be wishful, it will move to his desire for the dream bring to light,
Educational requirements may vary slightly depending on the company, the area you wish to work and your previous work experience. For most all Internal Auditor careers, the minimum educational requirement is the completion of a Bachelor's degree.
Internal auditors are expected to have a thoughtful audit plan, an excellent working relationship with management, support from the audit committee, and state-of-the-art audit tools. But unless the right people are in place, many internal audit departments won't be able to solution the audit process.
An Internal Auditor will perform various types of tasks depending on the industry and whether the hiring organization is public or private. The main role of an Internal Auditor is to verify the accuracy of all internal records, evaluate internal systems in order to detect any mismanagement, inefficiencies or fraud
Applicants who wish their work in these areas to be considered in relation to their total Practical experience must demonstrate that they are equipped to fully identify the purpose, Scope and required function of the system under review. They also need to show that they have acquired sufficient knowledge to practically test the system and its accuracy. They must demonstrate that they have the capability to recommend modifications (or alternative technical approaches) to ensure the efficiency and accuracy of the system. Provided that the experience is broad enough to meet the elements identified. The auditor performing the evaluation is concerned with the what, whom when, where, why, and how of running an efficient and effective operation. This means that the auditor must have knowledge of the company’s operations
I think the solution is to work in the other direction. Instead of working back from a goal, work forward from promising situations. This is what most successful people actually do anyway.
•Ethics-: credibility, integrity and honesty,
•Open minded-: willing to listen, learn accept new ideas,
•Diplomatic-: polite with high manners to his colleagues – after all he is working with people and he is the representative of the top management,
The auditor’s ability to select the most appropriate strategy when conducting an audit. Auditors must be free to approach a piece of work in whatever manner they consider best. As a client company grows and conducts new activities, the auditor’s approach will likely have to adapt to account for these. In addition, the auditing profession is a dynamic one, with new techniques constantly being developed and upgraded which the auditor may decide to use. The strategy/proposed methods which the auditors intend to implement cannot be inhibited in any way.
In order to be a solution your Internal Auditor process, you will need to have various sets of abilities. You will often need to work alone on projects; therefore, you must have a strong work ethic and desire to perform highly. You will also need to have very strong computer skills as well as have current knowledge of auditing and accounting software available for your organization's type of information system
Otherwise Abilities can be useful to almost the whole thing such
•what are the top 3 traits or skills every internal auditor must have to excel?
•Can you suggest any tips or insights to develop your internal auditor expertise?
•The three essential traits for an Internal Auditor are-Selling and communication skills and enthusiasm with leadership
(1) One should be able to sell one's credentials and abilities and also be able to sell the recommendations to clients or management or process owners.
(2) The Internal Auditor should also be enthusiastic to read in between lines and go beyond the necessary Internal Audit program and documents when there is a need for the same.
(3) One should have great transformational and transactional leadership skills and be able to share knowledge, develop people and work toward a better controlled, compliant and profitable business conditions so that there is protection of everyone's interest and assurance of good business practices
Internal Auditors are taught to learn and enforce the rules, for instance those governing internal controls, policies and procedures, laws and regulations. Although this work is clearly challenging, it does not usually involve creative thinking. Creativity is not a natural talent that one either has or doesn't have. Creative thinking can be taught and learned, just like sales or public speaking. Of course, some people have more natural ability than others, but that's true of almost everything in life.
Abilities can be applied to almost everything internal auditors do. For example, abilities can help in finding new ways to:
•Ability to use standard systems:
•Ability to learn new products fast.
•Ability to estimate person-hours, hence cost
•Strengthen the quality of audits.
•Provide value-added service to operating departments.
•Increase service to management and the audit committee.
•Enhance professional credibility.
•Improve working conditions.
Internal auditors need to have the ability to deliver a product that meets or exceeds the expectations of senior management. Internal auditors must also be able to tell their story to maintain their influence, relevance, and reliability within the organization.
The following skills are helping an auditor for his /her self confident & ability
1. Explorer - The Explorer searches for new ideas -- good or bad, rational or outrageous, serious or silly. Many, many ideas are needed to find innovative solutions to problems and challenges. As a famous philosopher once said, "Nothing is more dangerous than an idea when it is the only one you have."
2. Artist - The Artist takes existing ideas, provided by the Explorer, and molds or transforms them into entirely new and unique ideas.
3. Judge. - The Judge weeds out bad ideas and attempts to find workable, feasible solutions.
4. Warrior - Finally, the Warrior implements the new ideas. Armed with a game plan, persistence, and diplomacy, the Warrior leads the battle against the many forces that resist change.
Each of the four steps is required if innovation is to occur. The most successful persons excel in all four areas, or they find others who complement their weaknesses
•Observer-: owns the ability to recognize what he sees and understand without interrogating,
•Perspective-: owns the ability to evaluate situations beyond appearance and with a wide systematic,
•View of things-: has the ability to understands the organizational consequences of his evidence,
•Versatile-: owns the ability to mobilize from one situation to another without losing direction
•Persistence-: must be persistence with his objectives and to not story away,
•Decisive-: ready to make decision