Page 114 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
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Tatjana Horvat and Franko Milost
cates with the external stakeholders as this kind of cooperation can
have an important influence on the degree to which an organisation
accomplishes its objectives (Chambers 2004).
We identify and assess how the systems of reporting and commu-
nication flow between employees in the company, so that they can re-
alise labour assignments among themselves, and with business part-
ners (customers, suppliers and others) in the environment (Koletnik
2010, 5).
The Assessment, Monitoring or Control of the Efficient
and Effective Operation of Internal Controls
The risk management process is constantly changing. Responses to
risks that were sometimes appropriate, may become irrelevant; control
activities become less effective, or are no longer active, the company’s
objectives are changed. Therefore, the management must determine
whether the operation of each component of the risk management pro-
cess is effective (Committee of Sponsoring Organizations of the Tread-
way Commission 2004, 79). This assessment can be carried out through
the current activities or through separate evaluations.
Auditor Reporting and the Monitoring of Measures
The ‘International Standards for the Professional Practice of Internal
Auditing’ (2012, Standard 2400) said that internal auditors should com-
municate the results of the internal audit assignment. The steps for re-
porting are as follows:
• final discussion with the management of the audited entity,
• preparation of a draft report,
• review of the comments and opinions received from the manage-
ment of the audited entity,
• preparation of the final report,
• sending the audit report.
The objectives of final meeting are: discussion on the conclusions and
recommendations, resolving any misunderstandings or misrepresenta-
tions of facts and allowing the subscriber to specify the interpretation
of specific areas of the audit, delivering views and observations, con-
clusions and recommendations, agreeing on possible solutions to the
problems given in the report, giving estimates for cooperation and pro-
viding information (Jagrič 2011, 64).
112
cates with the external stakeholders as this kind of cooperation can
have an important influence on the degree to which an organisation
accomplishes its objectives (Chambers 2004).
We identify and assess how the systems of reporting and commu-
nication flow between employees in the company, so that they can re-
alise labour assignments among themselves, and with business part-
ners (customers, suppliers and others) in the environment (Koletnik
2010, 5).
The Assessment, Monitoring or Control of the Efficient
and Effective Operation of Internal Controls
The risk management process is constantly changing. Responses to
risks that were sometimes appropriate, may become irrelevant; control
activities become less effective, or are no longer active, the company’s
objectives are changed. Therefore, the management must determine
whether the operation of each component of the risk management pro-
cess is effective (Committee of Sponsoring Organizations of the Tread-
way Commission 2004, 79). This assessment can be carried out through
the current activities or through separate evaluations.
Auditor Reporting and the Monitoring of Measures
The ‘International Standards for the Professional Practice of Internal
Auditing’ (2012, Standard 2400) said that internal auditors should com-
municate the results of the internal audit assignment. The steps for re-
porting are as follows:
• final discussion with the management of the audited entity,
• preparation of a draft report,
• review of the comments and opinions received from the manage-
ment of the audited entity,
• preparation of the final report,
• sending the audit report.
The objectives of final meeting are: discussion on the conclusions and
recommendations, resolving any misunderstandings or misrepresenta-
tions of facts and allowing the subscriber to specify the interpretation
of specific areas of the audit, delivering views and observations, con-
clusions and recommendations, agreeing on possible solutions to the
problems given in the report, giving estimates for cooperation and pro-
viding information (Jagrič 2011, 64).
112
