Auditing Standard 2000 – Management of internal audit activity

Auditing Standard 2000 – Management of internal audit activity:

Internal audit activity, the internal audit manager to effectively manage the internal audit work in order to ensure that the internal audit activity creates value for the organization.

interpretation:

The internal audit unit is effectively managed when:

• The goals and responsibilities stated in the internal audit charter are fulfilled.
• Standards should be observed.
• The trends and issues that can affect the organization should be investigated.

Internal audit activity creates value for the organization and its stakeholders, and by examining strategies, operational goals and risks, it tries to suggest ways to improve the processes of the governance system, risk management and control, and provides impartial assurance.

Beginning:

This committee standard provides criteria that the director of internal audit must achieve in managing the internal audit unit.

Reviewing the requirements related to each of the elements of the above interpretation can help the internal audit manager prepare for the implementation of this standard.

According to this standard, the internal audit manager is responsible for the management of the internal audit unit in such a way that, in general, it is able to comply with the standards and the internal auditors also follow the standards and professional code of conduct.

Therefore, the regular review of the framework by the internal audit manager is very important so that he can consider the details of compliance with these standards.

Standard 2000 refers to fundamental issues that are necessary to realize the principle of adding value to the internal audit unit.

The internal audit manager starts his work by reviewing the purpose and responsibility of the internal audit unit, which has been agreed upon by the internal audit manager, senior management and the board of directors and recorded in the internal audit charter.

Studying the organizational chart can help the internal audit manager to identify the organization’s stakeholders, structure and reporting relationships.

Examining the organization’s strategic plan gives the internal audit manager a view of the organization’s strategies, operational goals, and risks.

Identified risks should include trends and problems ahead, such as those related to the industry, regulatory requirements, and political and economic conditions of the organization’s activity.

The internal audit manager collects other data about the organization’s strategic plan through discussions with senior management and the board of directors.

This foresight and preparation provides the work environment for the internal audit manager to manage the internal audit unit to add value to the organization through improving the management processes, risk management and control in the organization and providing related assurances.