Page 97 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
P. 97
6 Internal Audit in the Financing
of Companies
Tatjana Horvat
University of Primorska
tatjana.horvat@fm-kp.si
Franko Milost
University of Primorska
franko.milost@fm-kp.si
We will focus on the internal audit engagement and internal audit
assignment, with which the internal auditor ensure that the com-
pany performance is legal. Specifically, we will focus on financing
of the company. The purpose of the paper is to present the steps
of the internal audit assignment, to review whether the corpo-
rate finance is legal. For this purpose we will use audit methods
co s o i i as the operational framework or a tool for setting up
and evaluation of the internal control system in the organisation.
With audit methods we will check if internal controls are working
in preventing mistakes and frauds in process of financing of the
company. Through audit methods of internal auditing in financ-
ing companies we found out that auditor should try to be inde-
pendent and objective according to internal audit’s professional
standards.
Ključne besede: internal auditing, financing, co s o framework
Introduction
Among the most critical challenges for managers of companies is de-
termining how much risk the entity is prepared to accept as it strives to
achieve its objectives and create value (Committee of Sponsoring Orga-
nizations of the Treadway Commission 2004).
The management needs a reasonable assurance regarding the achieve-
ment of the objectives in the following categories (Committee of Spon-
soring Organizations of the Treadway Commission 2004):
• operations should be effective and efficient,
• financial reporting should be reliable,
• the performance should be applicable with the laws and regula-
tions.
95
of Companies
Tatjana Horvat
University of Primorska
tatjana.horvat@fm-kp.si
Franko Milost
University of Primorska
franko.milost@fm-kp.si
We will focus on the internal audit engagement and internal audit
assignment, with which the internal auditor ensure that the com-
pany performance is legal. Specifically, we will focus on financing
of the company. The purpose of the paper is to present the steps
of the internal audit assignment, to review whether the corpo-
rate finance is legal. For this purpose we will use audit methods
co s o i i as the operational framework or a tool for setting up
and evaluation of the internal control system in the organisation.
With audit methods we will check if internal controls are working
in preventing mistakes and frauds in process of financing of the
company. Through audit methods of internal auditing in financ-
ing companies we found out that auditor should try to be inde-
pendent and objective according to internal audit’s professional
standards.
Ključne besede: internal auditing, financing, co s o framework
Introduction
Among the most critical challenges for managers of companies is de-
termining how much risk the entity is prepared to accept as it strives to
achieve its objectives and create value (Committee of Sponsoring Orga-
nizations of the Treadway Commission 2004).
The management needs a reasonable assurance regarding the achieve-
ment of the objectives in the following categories (Committee of Spon-
soring Organizations of the Treadway Commission 2004):
• operations should be effective and efficient,
• financial reporting should be reliable,
• the performance should be applicable with the laws and regula-
tions.
95
