Page 100 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
P. 100
Tatjana Horvat and Franko Milost
• investigation and evaluation of the adequacy, effectiveness and
quality of the internal control system,
• providing reliable and credible information,
• ensuring compliance with policies, plans, laws and regulations,
• the protection of property,
• ensuring the efficient and effective use of resources,
• achieving the aims and objectives relating to operations and pro-
grams and the continuous improvement of the implementation of
the basic business functions of the organisation.
For the purpose of the internal audit of the legality of the financ-
ing activities, we use the definitions and subjects in the preceding para-
graph. We can emphasise ensuring compliance with policies, plans, laws
and regulations in the process of financing.
In our assignment, the scope of the internal audit legality of the fi-
nancing activities is to ensure compliance with the policies, plans, laws
and regulations in the process of financing.
We can say that the objectives are derived from the purpose. In our
assignment, the objectives of the internal audit engagement are:
• to verify whether the existing internal control in a company in the
process of financing activities are carried out in accordance with
the legal and professional standards and the internal legal business
and organisational rules,
• whether internal controls are effective and efficient so that the key
risks are controlled, and
• to provide an independent opinion on the legality of the financing
activities of the company.
Process of Financing
How can we theoretically define the financing process? It is important
for the internal audit, because the finance process is the scope of our
internal audit assignment. The internal auditor should understand the
area under review.
There are many definitions and the focus was on one of them that is
most commonly found in the literature. The financing of the company
refers to the following stages (Rebernik in Repovž 2000, 67–8):
• the provision of resources (funding), which means any cash inflow
into the company that is the result of the transformation of mate-
98
• investigation and evaluation of the adequacy, effectiveness and
quality of the internal control system,
• providing reliable and credible information,
• ensuring compliance with policies, plans, laws and regulations,
• the protection of property,
• ensuring the efficient and effective use of resources,
• achieving the aims and objectives relating to operations and pro-
grams and the continuous improvement of the implementation of
the basic business functions of the organisation.
For the purpose of the internal audit of the legality of the financ-
ing activities, we use the definitions and subjects in the preceding para-
graph. We can emphasise ensuring compliance with policies, plans, laws
and regulations in the process of financing.
In our assignment, the scope of the internal audit legality of the fi-
nancing activities is to ensure compliance with the policies, plans, laws
and regulations in the process of financing.
We can say that the objectives are derived from the purpose. In our
assignment, the objectives of the internal audit engagement are:
• to verify whether the existing internal control in a company in the
process of financing activities are carried out in accordance with
the legal and professional standards and the internal legal business
and organisational rules,
• whether internal controls are effective and efficient so that the key
risks are controlled, and
• to provide an independent opinion on the legality of the financing
activities of the company.
Process of Financing
How can we theoretically define the financing process? It is important
for the internal audit, because the finance process is the scope of our
internal audit assignment. The internal auditor should understand the
area under review.
There are many definitions and the focus was on one of them that is
most commonly found in the literature. The financing of the company
refers to the following stages (Rebernik in Repovž 2000, 67–8):
• the provision of resources (funding), which means any cash inflow
into the company that is the result of the transformation of mate-
98
