Internal Audit Case Study

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CHAPTER 1 1.0. INTRODUCTION 1.1. PREFACE Internal audit plays a critical role in the Corporate Governance structure and process in an organization and posits as a key component of the independent risk management oversight function. MFI policy on the internal audit function is, therefore, designed to ensure that internal audit provides the Board with the independent assurance that the risk management, control and governance policies and processes are being complied with. The Board of Directors of the MFI is charged under the Audit Charter to set up an internal audit function that is adequately resourced and operates in accordance with the Audit Charter and international internal audit standards. In this vein the Board is required to establish…show more content…
The team leader should work directly with audit staff during audits, manage the engagement in the field and perform appropriate audit procedures. In addition, the team leader should be responsible for: - Preparing time budgets and monitoring performance against the budgets; - Identifying audit issues for discussion with the Head of Department; - Preparing consolidated draft audit reports; - Discussing other issues, including human resource, with the Head of Department; - Providing supervision, counseling and on-the-job coaching to audit staff, helping them to understand the objectives and implications of their work and its documentation; - Reviewing working papers prepared by the audit staff, following up the clearance of review queries and evaluating the sufficiency and appropriateness of the audit evidence obtained; and - Making suggestions for improving future audits. - Leading discussions with the staff of the Department being audited. - Resolving issues that arise between team members and staff of the Department being…show more content…
Management attention to previously identified problems or audit findings has been comprehensive and effective. There are no audit findings of severity level 1 or 2 (issues requiring the immediate or prompt attention of management respectively). b. Satisfactory: The audited activity is generally achieving its primary responsibilities and objectives. Overall, the internal control system provides reasonable assurance regarding the reliability of financial reporting and the adequacy of safeguards over assets. However, certain enhancements may be warranted in existing controls, or the level of compliance with them, to avert more serious problems in the future. The efficiency and effectiveness of operations, level of compliance with applicable laws and regulations, productivity, error rates and management and staff performance are acceptable, although some significant, but not critical improvement opportunities may exist. Management attention to previously identified problems or audit findings has been generally

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