State of the Art Definition and Practices of Internal Audit
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Internal audit, definition, practices, company performance, evaluation, internal control, external audit, statutory audit committee, statutory audit, research hypotheses, questionnaire
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Abstract
This document provides a comprehensive overview of the definition and practices of internal audit, including its impact on company performance and evaluation. It covers the role of internal audit in detecting risks and improving internal control, as well as its relationship with external audit and statutory audit. The document also presents research hypotheses and a questionnaire to assess the performance of internal audit within a company.
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[...] European Scientific Journal, ESJ, 200. 13) Omri, A., Ghorbel, F., & Baklouti, F. (2009). Impact of External Audit on Financial Reporting Quality: Case of Tunisian Listed Companies. Governance Review, 6(2). 14) Oussii, A. A., & Boulila, N. T. (2017, May). The Impact of Formal and Informal Interactions between Internal Audit Function and Audit Committee on the Implementation of Internal Audit Report Recommendations. [...]
[...] However, it will be necessary to perform sampling calculations in order to verify that the chosen sample is representative and provides a reasonable assurance. It is necessary to perform as many tests as there are variants in order to have the opportunity to identify possible errors and especially to correct them if they are significant. It is also necessary to deepen the knowledge as much as possible, in order to better understand the procedures and the control points. The second step is the verification of the effective functioning of internal controls. [...]
[...] Given this, we can validate this third research hypothesis and confirm the risk reduction caused by internal audit. HR4: Internal audit enables a company to make strategic decisions. This research hypothesis was difficult to evaluate, given that strategy spans several years and therefore a certain hindsight is needed to appreciate the impact of internal audit on the subject. Thus, audit committees bring together financial managers but also IT, which implies that internal audit is of interest to top management and at a regular frequency. [...]
[...] Finally, methodology, synthesis spirit, dynamism and proactivity are generic criteria on which internal auditors are evaluated. 1.2.2.2. Quantitative criteria Again, Manita (2008) and Roussy (2012) proposed different quantitative criteria. We will also use the work of Jiang (2015), in which he determines the components that guarantee the quality of quantitative elements. Quantitative criteria are obviously fewer in number but are easier to present. Indeed, qualitative criteria present a subjective part, whereas quantitative criteria can be the subject of mathematical comparison. [...]
[...] Can you describe the main internal audits that you put in place? We note that the audit of data quality is present in all the audit plans of the interviewed individuals, as well as the audit of the anti-fraud device. The audit of the IT strategic plan and the IT function are also very present in the responses of our interviewees. If the GDPR was a subject, it is now less present in the audits with only half of the interviewed individuals having chosen this subject this year. [...]
