About This Chapter
Internal Auditing Overview - Chapter Summary
From internal auditing standards to the professional code of ethics, this chapter covers essential information related to internal auditing. You'll go over why internal auditing is done, types of internal audits and how objectivity is maintained throughout the audit process. After you complete your review of this chapter, you should be able to do the following:
- Define the standards of an internal audit
- Identify the types of internal audits
- Detail the code of ethics and professional practices set by the Institute of Internal Auditors
- Explain the purpose of an internal audit
- Discuss the independence of internal and external auditors
- Point out how to foster organizational independence with internal audits
- Understand audit objectivity and what might impair this objectivity
- Assess and ensure objectivity in internal audits
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1. Internal Auditing: Definition & Standards
If you work in 'corporate America,' you may have heard the infamous phrase, 'We're here from internal audit and we're here to help.' Even if you haven't, in this lesson we'll discuss what an internal audit is and the standards auditors must follow.
2. Types of Internal Audits
Internal audits are conducted for different reasons and with varying objectives. In this lesson, we will discuss four of the most common types of internal audits and provide examples for each.
3. IIA Code of Ethics: Principles & Rules of Conduct
As the international professional organization for auditors, the Institute of Internal Auditors (IIA) develops standards for the auditing industry. In this lesson, we will introduce and discuss the Code of Ethics found in those standards.
4. Internal Audit Activity: Purpose, Authority & Responsibility
Sometimes, employees worry when 'the auditors' come to visit. But if audit isn't seen as a valuable function, why do companies fund an audit department. In this lesson, we'll discuss the purpose, authority, and responsibility of internal audit.
5. Fostering Organizational Independence During an Internal Audit
The second topic addressed in the IIA's audit standards is organizational independence. In this lesson, we'll discuss why this independence is so important, as well as how this independence can be developed and encouraged.
6. Audit Objectivity: Definition & Impairments
Two characteristics are often cited as the most important for auditors: independence and objectivity. In this lesson, we'll define objectivity, discuss why it is so critical, and give examples of how it might be jeopardized.
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Other chapters within the Certified Internal Auditor (CIA): Exam Prep & Study Guide course
- Internal Auditor Skills & Responsibilities
- Internal Auditing Controls & Risk Management
- Planning the Audit Process & Gathering Data
- Data Analysis & Reporting Tools for Auditors
- Strategic Role of the Internal Auditor
- Operational Role of the Internal Auditor
- Establishing an Internal Audit Plan
- Individual Auditing Engagements
- Fraud Risk Assessment & Management for Auditors
- Corporate Governance & Business Ethics
- Organizational Structure & Business Processes
- Modern Organizational Communication
- Strategic Management, Competitor Analysis & Decision Making
- Organizational Structure, Behavior & Performance
- Leadership & Project Management Styles & Methodologies
- Information Technology Security & Development
- IT System Infrastructure
- Concepts in Financial Accounting
- Concepts in Managerial Accounting
- Global Business Environment Basics