Establishment and implement of internal audit projects applying by latest International Professional Practices Framework (IPPF) based on risks could pave a way for establishing an effective internal audit services using the experts experiences and knowledge.
Bitter and sweet experiences in work area and avoiding unacceptable actions have boosted up and corrected the internal audit services structure in organizations. International organizations such as OECD have explained the sovereignty of the company in order to provide a considerable help to the several professional activities in relation to internal audit.
By defining its revised trade missions in the form of internal audit committee, it would be able to play an important role in controlling different parts of organizational activities and final achieved results of operations.
It is obvious that, in our country, the internal audit activity with its new form and content is still in its early stages. Therefore, there would not be much remarkable experiences available in a format of outsourcing projects in order to provide such services. However, this institute is ready to render such services by taking professional certificates from center of training expert auditors and has made an approach to make all efforts to fulfill the function of providing organizations with desirable internal audit services. Having the membership of the international professional associations has been one of the strategic approaches of the institute. Now, some of our managers are member at IIA-UAE.
System of internal controlling and internal audit organization
Following the increasing complexities of giant organizations, such organizations require an effective managerial instrument to monitor and guide their internal controlling system.
*Management is looking forward to the controlling systems to see if they are well designed and well operated.
* If internal controlling system is not working well, the organization will face the risks while trying to achieve its goals.
* Since management is responsible for designing and commissioning the internal controlling systems in organization, it will have to use an effective internal audit system to evaluate their performance to make sure they are operating well.
* Internal auditors evaluate internal systems from two perspectives of design and efficiency. Therefore an efficient internal system assures managers that the company will meet its goals by spending reasonable costs.
Professional history of internal audit in Iran and in the world
Internal auditors association (IIA) which was established in 1941 in Florida (U.S) and now has over 175000 members from 165 different countries considered as the biggest professional internal audit association in the world.
Internal audit association of Iran started its activities in June 24th, 2012 trying to offer an explanation for the importance of the internal auditors who play a key role in the field of financial statements and reports across the country to make sure that they are of enough accuracy and transparency.
Internal audit definition
*Internal audit is a counseling, dependant, neutral activity which is trying to make confidence and improvement the function of the organization.
Definitions key words are as follows:
*Internal audit is 1. Dependant and neutral
Processes of counseling include:
Making confidence services include:
Internal audit from traditional and modern perspectives
During the history all professions have necessarily turned to modern ones. So it has been the same for internal audit as well. Here are some of related approaches:
Traditional approach Modern approach
Considering financial risks Business risk management
Auditing former events Strategic plans auditing
Knowledge of auditing industrial knowledge
Auditing daily operations Management function auditing
Controlling of finance auditing Value creation and risk management auditing
Rendering expert services Role of consultation
Micro view Macro view
Considering financial registration considering key indicators
Limited use of information technology Extensive use of IT
Internal audit objectives and procedures
Internal audit services
The most significant internal audit services are: