Page 103 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
P. 103
Internal Audit in the Financing of Companies
ous stages of the process of financing the company, not all possible
matters.
• Determine the risks in the process of financing.
• Develop a plan to provide internal audit engagement.
A well-prepared work program of the internal audit assignment (Vez-
jak 2011, 11):
• gives a general overview of the work that will be carried out and
facilitate an understanding of the audited entity;
• provides evidence that the work was properly planned;
• offers a document for review by the management;
• gives an assurance that all the risks are adequately addressed;
• assists in monitoring the work;
• governs and connects the audit.
The Planning of the Internal Audit Assignment: Work Programme
The Engagement Work Program is a document that lists the procedures
to be carried out in the business to realise the plan (International In-
ternal Audit Standards 2013, 19).
The work program can be divided into introductory, main and final
parts. The introductory section contains basic information on the in-
ternal audit assignment, namely the type of internal audit (regular, ir-
regular), labelling, the name and surname of performers, the subject of
the internal audit, the aim and the audit procedures.
The central part contains:
• management objectives (questionnaire)
• audit procedures,
• assessment of the adequacy of the existing internal controls (key
controls are operating effectively: yes, no, partially)
• types of materials,
• notes of the internal auditor.
The final part of the work program contains a summary of the find-
ings.
Planning the Internal Audit Assignment: Risk Assessment
The internal auditor should plan and describe the key risks within the
scope of the audit. The initial assessment of risks for the legality of fi-
nancing the activities of the company is carried out using:
101
ous stages of the process of financing the company, not all possible
matters.
• Determine the risks in the process of financing.
• Develop a plan to provide internal audit engagement.
A well-prepared work program of the internal audit assignment (Vez-
jak 2011, 11):
• gives a general overview of the work that will be carried out and
facilitate an understanding of the audited entity;
• provides evidence that the work was properly planned;
• offers a document for review by the management;
• gives an assurance that all the risks are adequately addressed;
• assists in monitoring the work;
• governs and connects the audit.
The Planning of the Internal Audit Assignment: Work Programme
The Engagement Work Program is a document that lists the procedures
to be carried out in the business to realise the plan (International In-
ternal Audit Standards 2013, 19).
The work program can be divided into introductory, main and final
parts. The introductory section contains basic information on the in-
ternal audit assignment, namely the type of internal audit (regular, ir-
regular), labelling, the name and surname of performers, the subject of
the internal audit, the aim and the audit procedures.
The central part contains:
• management objectives (questionnaire)
• audit procedures,
• assessment of the adequacy of the existing internal controls (key
controls are operating effectively: yes, no, partially)
• types of materials,
• notes of the internal auditor.
The final part of the work program contains a summary of the find-
ings.
Planning the Internal Audit Assignment: Risk Assessment
The internal auditor should plan and describe the key risks within the
scope of the audit. The initial assessment of risks for the legality of fi-
nancing the activities of the company is carried out using:
101
