Question

What are some specific audits performed by internal audit? Financial, operational or IT audits are specific enough.

Answer 1

-- Operational Audits: The operational audit makes an assessment of risks as well as evaluates internal controls for operations of units, departments, and areas. The objectives of operational audit include determining whether operations are functioning effectively, efficiently, in alignment with the company's mission, and in accordance with the intent of management. Few areas of operational audits include: organizational structure, procedures and processes, management and security of assets, data accuracy, staffing, and productivity.

-- Financial Audits: The financial audit develops programs of audit for the assessment, evaluation, and making recommendations to management in regard to the accounting and financial reporting of transactions as well as the activities. The main motive is to ensure that the financial activity of the units, departments, and areas are accurate and completely reflected in the appropriate financial reports. Few areas of financial audits include: segregation of duties, procurement, approvals and authorizations, reconciliations and reviews.

-- Information Technology Audits: The information technology audit develops programs of audit for the assessment, evaluation, and making recommendations to management in regard to the internal controls adequacy and security inherent in the management information systems, and the efficiency of the associated management on risk. It makes an assessment that processes maintain data integrity, and ensures that performances are in compliance with IT-specific policies, laws, and standards