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Protection of the Effectiveness of Internal Audit Function - Essay Example

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Protection of the Effectiveness of Internal Audit Function

Hence, it is worth considering how the effectiveness of the internal audit function could be better protected so as to protect shareholders as well as enable the external auditors to offer a higher quality audit opinion. When internal auditors are efficient in service delivery means that the opinion they will give in the running of the organisation will be the correct position of the company (Get through Guides 2007). The internal auditors will be able to give recommendation to improve the running of the organisation. These recommendations will automatically translate to the company being run in a way that will be beneficial to the shareholders. For the shareholders, this will mean that they will have the true position of the organisation and will be able to make informed decisions on how best to improve the business and they will know if their investment in the company is going to give worthwhile returns. The external auditors on the other hand will meet an organisation that has its affairs in order and the kind of audit opinion they will give will be quality audit opinion. The reason is that the lapses will be recognised and recommendations made to correct them. This will attract investors since they will be confident that their investment will not be mishandled and this will automatically bring more profits to the shareholders. Internal auditors in carrying out their work efficiently can be protected by ensuring their independence is maintained. Despite the fact that the internal auditors are in the company’s payroll, their work has to be free from managerial influence. This is because they need to maintain the highest degree of professionalism when going through the organisation’s books of accounts. If autonomy is maintained, they will be able to offer a true and just view of the books of accounts and give either a qualified audit opinion or unqualified audit opinion (Grey & Manson 2008). The other way to protect them is for the internal auditors to work with the management and not work like they are out to get the mistakes that have been committed. The auditors have to remember that they are not supposed to correct the mistakes done but rather give recommendations on how to rectify or improve. Management cooperation will ensure the records needed for audit will be availed with no problems and thus will ease the work of the auditors. If management cooperation is secured, the other employees will also comply with the set rules they are sure that they will be audited and a true and fair opinion given. The working well with management will also give the internal auditors and the management an avenue to make proper risk management processes that will deter future lapses in the organisation’s books (Get through Guides 2007). With the current technology surge in the running of organisations, the internal auditors have to be kept up-to-date with the technology. This will mean that they are always in loop with any lapses that may occur in the organisation. Risks that affected an organisation a year ago might actually be very different with the risks in the current year. This will mean updates on risks that may affect the organisation have to be made available. Without this the internal auditors might actually be overlooking a potential problem for the organisation and this will be detected by the external auditors which in turn will affect ...Show more

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Protection of the Effectiveness of Internal Audit Function [Name] [Institution] Protection of the Effectiveness of Internal Audit Function The internal audit function is for the internal auditors to independently evaluate if policies and procedures set by management are being followed to the letter…
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