2014 | OriginalPaper | Buchkapitel
Internal Audit Process
verfasst von : Felix I. Lessambo
Erschienen in: The International Corporate Governance System
Verlag: Palgrave Macmillan UK
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The origins of auditing can be traced back to Greek, Egyptian and earlier civilizations. Audits were associated with detection of fraud. The audit business began to grow with the emergence of large-scale businesses. Despite making a huge investment in propaganda, the auditing industry has been unable to detect massive frauds or even have been part of the problem. The industry opposes all reforms and leads a strong lobbying in Washington, DC, London, and Brussels. The audit function is salient not only to investors or the public trust, but to society as a whole. One of the fundamental tenets of current corporate governance around the world is the importance of external financial audit.3The function of the audit is to ensure that an organization’s results and related disclosures are fairly presented.4 While conducting an internal audit activity, the auditor is required to assess and make appropriate recommendations for improving the governance process in its accomplishment of the following objectives: (i) promoting appropriate ethics and values within the organization, (ii) ensuring effective organizational performance management and accountability, (iii) communicating risk and control information to appropriate areas of the organization, and (iv) coordinating the activities of and communicating information to the board, external and internal auditors, and management.5