• About WordPress
    • WordPress.org
    • Documentation
    • Support
    • Feedback
  • Log In
  • Register

  • Log In
  • News Feed
  • Home
  • Forums
  • Articles
  • Jobs
  • Files
  • Upload File
  • Ask Query
  • CISA Lectures
  • Submit Article
    Sign in Sign up


    • Home
    • Forums
    • Articles
    • Jobs
    • Files
    • Upload File
    • Ask Query
    • CISA Lectures
    • Submit Article

    • Log In
    • News Feed
    Sign in Sign up

    Tag: internal control

    Relationship Between Internal Control & Internal Audit

    Internal Control is part of the first line of defense because it is the responsibility of Operational Management, which itself is accountable to Senior Management.…

    Admin June 26, 2021
    0 Comments

    Recent Posts

    • CISA Domain 5 Complete Video Lectures
    • CISA Domain 4 Complete Video Lectures
    • CISA Domain 3 Complete Video Lectures
    • CISA Domain 2 Complete Video Lectures
    • CISA Domain 1 Complete Video Lectures

    Latest Files

    Icon
    Fraud triangle and Internal Controls
    126.26 KB 1 file(s)
    Icon
    Top Audit Risks of 2021
    7.15 MB 1 file(s)
    Icon
    Fraud risk management framework
    1.20 MB 1 file(s)
    Icon
    Annual Internal Audit Plan template
    788.25 KB 1 file(s)
    Icon
    KPIs of Internal Audit Function
    1.52 MB 1 file(s)
    Loading
    • Important sites
    • CIA (IIA)
    • CISA
    • CFE
    • ICAI
    • Amazon
    © 2023 - Internal Audit Network
    • Join Our Telegram Network
    • Disclaimer
    • Privacy Policy

    Do follow us

    Forum Description

    Internal Control is part of the first line of defense because it is the responsibility of Operational Management, which itself is accountable to Senior Management. Internal Audit is part of the third line of defense. It even assesses the effectiveness of the first (Operational Management functions) and second (Risk and Compliance Management functions) lines of defense. Moreover, unlike Internal Control, Internal Audit may report directly to the Board of Directors and specifically the Audit Committee, in order to maintain a certain independence and objectivity when assessing other functions in the company that operate at the first two lines of defense.

    No alt text provided for this image

    Although there is a strong and mutual relationship between them, internal control and internal audit are two different concepts. The importance of internal control and internal audit, which is a part of it, in achieving the objectives of the administrations, in the fulfillment of their activities more effectively and efficiently, in the reliability of the financial reports presented to the public, is a reality accepted by everyone. In this sense, it is very important to raise awareness about internal control in administrations.

    Internal control is the creation and implementation of the necessary control systems and methods to reduce the impact of possible risks. It is the management's responsibility to establish an effective internal control system, to operate and monitor this system as required.

    Internal auditing is an important but different dimension of internal control. Managers obtain information about the nature of internal controls from the reports of the internal audit function created as part of the internal control structure. Internal audit units examine whether the internal control systems installed in the administrations work properly and report to the senior management. In other words, internal audit units provide information to management regarding internal controls, make evaluations and make proposals. The internal audit activity helps the organization have effective controls by evaluating the effectiveness and efficiency of controls and encouraging continuous improvement.

    Despite his duties and powers, the internal auditor is not responsible for the dysfunctional financial management and the effectiveness of the internal control environment and management. The internal auditor is only responsible for the success of the internal audit. Managers are responsible for the success of internal control.

    Internal audit provides information, evaluations, and recommendations to management regarding internal controls. However, no matter how valuable information internal audit provides to management, it should not be seen as a substitute for an effective internal control system. On the other hand, an effective and strong internal control structure reduces the work of internal audit as well as management, allowing these functions to deal with more important issues.

    No alt text provided for this image

    Although internal control activities operate as an uninterrupted process, the internal audit function begins to work after the activities are carried out and evaluates the events after they occur.

    Internal control is a process that ensures the accuracy and reliability of the activities, and internal audit tests and reports the accuracy and reliability of the activities.

    Internal auditing is a service for management. Examining and evaluating internal control and providing assurance to the top management are within the scope of internal audit functions. Internal audit itself is part of the organization's internal control system and includes all aspects of internal control, not just financial control.

    It is essential that internal audit maintains its distance from management control. Thus, the institution will be aware of its responsibility for management control and will strive to carry out internal control effectively. The internal auditor is only responsible for the success of the internal audit. Managers are responsible for the success of internal control.

    Internal audit should help the organisation have effective controls by evaluating the effectiveness and efficiency of operations and encouraging continuous change.

    Article by :

    Salih Ahmed ISLAM

    Report

    There was a problem reporting this post.

    Harassment or bullying behavior
    Contains mature or sensitive content
    Contains misleading or false information
    Contains abusive or derogatory content
    Contains spam, fake content or potential malware

    Block Member?

    Please confirm you want to block this member.

    You will no longer be able to:

    • See blocked member's posts
    • Mention this member in posts
    • Add this member as a connection

    Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.

    Report

    You have already reported this .