Internal Audit services

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

  1. Participates in providing counseling and confidence services
  2. Increases the values and improves the quality of operations
  3. Has an organized and targeted approach
  4. Analyzes the risk management and the leadership of the organization

Processes of counseling include:

  1. Defining the needs of the company
  2. Finding each sector problems
  3. Collecting information
  4. Providing solution for the problems
  5. Following the cooperation offers

Making confidence services include:

  1. Considering evidence and facts objectively
  2. Evaluating the risk management processes
  3. Controlling the system of organizational leadership including financial affairs, functions, observing rules and security

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:

  1. Preparation, planning and implement of internal audit according to professional standards
  2. Evaluation of internal controlling system and providing solution to them
  3. Evaluation of new executive ways of preserving properties
  4. Cooperation with dependant auditors and internal inspectors
  5. Reviewing and following – up listed items in legal reports of auditors /Inspectors
  6. Providing comments on financial problems & disputes
  7. Cooperation with other units in order to increase efficiencies and decrease expenses
  8. Cooperation with organization to establish necessary controls in current procedures
  9. Preparation of periodic reports or in case concerning the organization function and subsidiary units.
  10. Leaving comments on the accounts, reports and budget of financial unit