Internal Audit Charter - CIA Students

(2013 Onwards)Brain Friendly Lecture Notes

iAA Charter (CIA Students)READ CAST by Hafiz Muhammad Adnan Rana

Professional Accountant/Auditor

Trained with A.F.Ferguson & Co – Chartered Accountants

Author of following for CIA/Internal Auditing Proession

Raising Above Personalities (Internal Control) – Travel to Chitral (Urdu Story based)

Keeping the SOX on (Corporate Governance) – Real Life Examples

Missing Millions (Fraud) – Travel to Dubai (Urdu Story based)

Souls are Weak, They are Liability (Risk Management / ERM) – Travel to London (Urdu Story based)

Chief Inspiring Officer @ Accurate Consultants, Sialkot

Socialprenuer @ The Student College, Research and Training Centre, Sialkot

A. Comply with The IIA’s Attribute Standards

1. Define purpose, authority, and responsibility of internal audit activitya) Determine if the purpose, authority and responsibility of the internal audit activity are clearlydocumented and approved. {P}b) Determine I the purpose, authority and responsibility of the internal audit activity arecommunicated to the engagement clients.{P}c) Demonstrate an understanding of the purpose, authority and responsibility o the internalaudit activity.{P}.

Business Context

The internal audit charter is the basic document of an internal auditdepartment.

Qualification Context

Make sure you understand its scope and the responsibility of the IAA.

Exam Context

CIA Candidates can expect questions on it.

Please open the Gliem Book of CIA Part 1 for Internal Audit Charter and your heart stopsbeating on the thought that you have to remember chunk of Dry material regarding iA Charter.Same rote learning….is there easy way Adnan ? Forget this book for a moment and lets gothrough few pages that can help u easily hard wired contents into your brain (Brain Friendly !!!)

Charter

Lets first learn the term of Charter.

A charter is the grant of authority or

rights, stating that the granter

(Board of Directors) formally recognizes the prerogative

of the recipient (Internal Auditors) toexercise the rights specified.

1. Define purpose, authority, and responsibility of internal audit activity

Please note than syllabus specifically mentioned Proficiency level {P} for thisInternal Audit Charter. (See above for a,b,c)

We learned from above that there are some statements so we willremember it with the work DOSSIER.

What is a dossier ? Lets learn the term first. A dossier is a collection of papers or other sources,containing detailed information about a particular person or subject.

D-Definition of iA will be mission of iAA

O-Opportunites for improvements be identified by iAA

S-Scope of work will be defined for iAA

S-Standards (ISPPIA) will be followed by iAA

I-Independence of iAA

E-EARL mean noble person through(Accountable/Authorise/No Authorise)

R-Responsibility of iAA

To remember b i.e Scope of Work we will use the term of

REIGNA reign is the period of a person's or dynasty's occupation of the office of monarch of a nation (e.g.Saudi Arabia, Belgium) or of a people (e.g. KwaZulu-Natal).

Scope of work means what comes under your belt. WRONG !!! Scope of work means thedivision of work (REIGN) to be performed under a contract (Charter) in the completion of a project(Internal Audit Plan), typically broken out into specific tasks with deadlines (Again I would say REIGN).

R-Risks are identified and managed.

E-Employees reactions as per code of conduct.

I-Informaton is accurate, reliable and timely.

G-Governance groups working effectively.

N-Necessary resources for organisation obtained economically, used efficiently,and adequated protected (one of powerful controls to look for)

We have broadly covered the contents of Internal Audit Charter.

Please read carefully the contents of a, c, d, e, g, h,i of Gliem Book for Charter.Others like b, f will be explained in detail below.

To remember b i.e Scope of Work we will use the term of

REIGNA reign is the period of a person's or dynasty's occupation of the office of monarch of a nation (e.g.Saudi Arabia, Belgium) or of a people (e.g. KwaZulu-Natal).

Scope of work means what comes under your belt. WRONG !!! Scope of work means thedivision of work (REIGN) to be performed under a contract (Charter) in the completion of a project(Internal Audit Plan), typically broken out into specific tasks with deadlines (Again I would say REIGN).

R-Risks are identified and managed.

E-Employees reactions as per code of conduct.

I-Informaton is accurate, reliable and timely.

G-Governance groups working effectively.

N-Necessary resources for organisation obtained economically, used efficiently,and adequated protected (one of powerful controls to look for)

We have broadly covered the contents of Internal Audit Charter.

Please read carefully the contents of a, c, d, e, g, h,i of Gliem Book for Charter.Others like b, f will be explained in detail below.

To remember b i.e Scope of Work we will use the term of

REIGNA reign is the period of a person's or dynasty's occupation of the office of monarch of a nation (e.g.Saudi Arabia, Belgium) or of a people (e.g. KwaZulu-Natal).

Scope of work means what comes under your belt. WRONG !!! Scope of work means thedivision of work (REIGN) to be performed under a contract (Charter) in the completion of a project(Internal Audit Plan), typically broken out into specific tasks with deadlines (Again I would say REIGN).

R-Risks are identified and managed.

E-Employees reactions as per code of conduct.

I-Informaton is accurate, reliable and timely.

G-Governance groups working effectively.

N-Necessary resources for organisation obtained economically, used efficiently,and adequated protected (one of powerful controls to look for)

We have broadly covered the contents of Internal Audit Charter.

Please read carefully the contents of a, c, d, e, g, h,i of Gliem Book for Charter.Others like b, f will be explained in detail below.

we completed 2/3rd of Scope of work now for remaining scope of work we

will use the term LOCUM

locum - someone (physician or clergyman) who substitutes temporarily for another member of the sameprofession. locum tenens · backup man, fill-in etc.

L-Laws and regulations are complied with.

O-Objectives, goals, plans and programs are achieved or not.

C-Continuous improvement and quality (TQM) is embedded into processes.

UM-for UM read the pic..and check ur IQ

we now come to last part of Charter contents that is RESPONSIBILITES of

iA/iAA and so we are using the terms ABRIDGMENT.

Abridgement or abridgment is a term defined as "shortening" or "condensing" and is most commonlyused in reference to the act of reducing a written work.

A-Audit risk plan preparation

B-Backer (supporter/Implement) to Audit risk plan

R-Reports to Audit Committee (refer earlier picture of iA)

I-Investigation of fraud

D-Dazzle (strong light prevent view) assignments (special task)

G-Goals (of iAA) and results (actual of iAA) for audit committee.

M-Maintain a professional staff.

E-Eagerly assess changes in business and review controls.

N-Narrowly consider work of external auditor not to duplicate.

T-Inform audit committee about trends/developments in iA.

Abridgment Example for Muslim students.

Al-Mustadrak alaa al-Sahihain (Arabic: ـــــتدرك المس;على الصحیحین Al-Mustadrak 'ala al-Sahîhayn) is a fivevolume hadith collection written by Hakim al-Nishaburi, when he was 72 years old. It contains 9045hadith. He claimed all hadith in it were authenticaccording to the conditions of either Sahih al-Bukharior Sahih Muslim or both.

Below are original documentsthat we are used in Practice:-Internal Audit Charter

-Internal Audit Plan

-Internal Audit Status report to Audit Committee

But firstPlease study the Gliem Book for overview of what we had had done and tick thesyllabus that we have covered. And solve the MCQ on Internal Audit Charter.

Best of Luck !!!

Below are original documentsthat we are used in Practice:-Internal Audit Charter

-Internal Audit Plan

-Internal Audit Status report to Audit Committee

But firstPlease study the Gliem Book for overview of what we had had done and tick thesyllabus that we have covered. And solve the MCQ on Internal Audit Charter.

Best of Luck !!!

Below are original documentsthat we are used in Practice:-Internal Audit Charter

-Internal Audit Plan

-Internal Audit Status report to Audit Committee

But firstPlease study the Gliem Book for overview of what we had had done and tick thesyllabus that we have covered. And solve the MCQ on Internal Audit Charter.

Best of Luck !!!

Internal Audit Charter PDF (Double click on it and this will open in PDF Reader)

Internal Audit Plan (Double click on it and this will open in PDF Reader)

Internal Audit Status Report to Audit Committee (Double click on it and this will open in PDFReader)