Page 28 - IIA MAGAZINE_March 2017_English

Internal Control

BY LALIT DUA EDITED BY ANDERW COX

The Audit Environment

Audit environment….. A definition of ‘audit environment’
What is it ? could be:
Never heard of it ?
Why do we need it ? “An organisation environment where
Who is responsible for it ? Internal Audit aligns its activities with
business activities and risks. Internal Audit
What is the ‘audit environment’? services focus on strategic and operational
issues important to the business, with a
Internal Audit reports to the Audit Committee and has independent status to make collaborative partnership formed between
objective, unbiased evaluation and judgement about systems, controls and risks relating Internal Audit and management. Action
to business operations. The Internal Audit Charter gives Internal Audit a mandate to ac- plans emanating from audits are facilitated
cess information, records and people. Yet the Internal Audit Department often struggles by Internal Audit, but agreed, owned and
to gain acceptance and prove its value to stakeholders in their organisation. implemented by management.”

For many years, Internal Audit profes-
sionals have been focusing on the ‘control
environment’, which is the foundation
on which an effective system of internal
control is built within an organisation. It is
designed to ensure:

28 INTERNAL AUDITOR - MIDDLE EAST MARCH 2017