Page 102 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
P. 102
Tatjana Horvat and Franko Milost
the assignment, including its objectives, scope and time/resource allo-
cations.
When planning the internal audit assignment, internal auditors
should take into account the ‘International Standards for the Profes-
sional Practice of Internal Auditing’ (2012). This means that the internal
auditor should consider:
• the objectives of the activity to be reviewed and the means of con-
trolling execution;
• significant risks to the activity, its objectives, resources and oper-
ations and ways to maintain the potential impact of the risk at an
acceptable level;
• the adequacy and effectiveness of the organisation’s risk manage-
ment compared with the control framework or model;
• opportunities for significant improvements to the organisation’s
risk management and control.
The planning of internal audit tasks comprises the following steps
(Koletnik 2007, 186):
• obtain basic information on the audited company or the auditee;
• recognise the business policies, objectives and organisation of the
company and to carry out an initial assessment of the business
risks at the company level;
• recognise and perform an initial assessment of the significant risks
in a revised field (a unit of Audit) and the existing methods of their
control;
• set targets for the internal audit task;
• develop a roadmap to the audited task.
Regardless of whether the company has an internal audit department
or of the internal audit was outsourced, it is necessary to have a Strate-
gic Plan of what will be audited in the coming years. After that, we check
our capacity, how many auditors are available and the costs of auditing.
Then we focus on a specific internal audit task – in this case an internal
audit of the legality of financing.
In order to conduct the internal audit assignment, the company has
to do the following:
• Describe how the financing process is carried out, while keeping
in mind the fact that we are interested in the legality of the vari-
100
the assignment, including its objectives, scope and time/resource allo-
cations.
When planning the internal audit assignment, internal auditors
should take into account the ‘International Standards for the Profes-
sional Practice of Internal Auditing’ (2012). This means that the internal
auditor should consider:
• the objectives of the activity to be reviewed and the means of con-
trolling execution;
• significant risks to the activity, its objectives, resources and oper-
ations and ways to maintain the potential impact of the risk at an
acceptable level;
• the adequacy and effectiveness of the organisation’s risk manage-
ment compared with the control framework or model;
• opportunities for significant improvements to the organisation’s
risk management and control.
The planning of internal audit tasks comprises the following steps
(Koletnik 2007, 186):
• obtain basic information on the audited company or the auditee;
• recognise the business policies, objectives and organisation of the
company and to carry out an initial assessment of the business
risks at the company level;
• recognise and perform an initial assessment of the significant risks
in a revised field (a unit of Audit) and the existing methods of their
control;
• set targets for the internal audit task;
• develop a roadmap to the audited task.
Regardless of whether the company has an internal audit department
or of the internal audit was outsourced, it is necessary to have a Strate-
gic Plan of what will be audited in the coming years. After that, we check
our capacity, how many auditors are available and the costs of auditing.
Then we focus on a specific internal audit task – in this case an internal
audit of the legality of financing.
In order to conduct the internal audit assignment, the company has
to do the following:
• Describe how the financing process is carried out, while keeping
in mind the fact that we are interested in the legality of the vari-
100
