Internal Audit

Benjamin in Cebu City, Philippines said: Hi Guys! I'm currently working as a Corporate Auditor for a large castellian conglomerate company in the Philippines engage in transportation & logistics, banking, food manufacturing, real estate & leasing, construction and ship building, power generation, consulting and distribution. I primarily joined this site for the forum as an avenue to exchange knowledge and best practices with other internal audit professionals.

Hope we can have a forum on relevant matters discussed soon. By the way, my e-mail ad is benjamin_inigo@yahoo.com

Hey my name is Rich and I was recently hired as an Internal Audit Trainee. Since I don't have any experience, I was wondering what the day-to-day and pros and cons are.

The crux of the matter when it comes to the motivation of the audit hinges on the independence of the auditor in executing his duties deligently. Like you say Cathy, its really frustrating when the auditor iS involved or engulfed by the politics of the organisation.
I am currently working on a research for the IIA (Zimbabwe Affliate) to determine the Status and Independence of the Internal Audit fuction. As much as we preach about the independence of the audt, the question is How REALLY independent is the auditor. To me independence involves being able to report adversly the operations of the organisation and be able to continue in employment. My question to you auditors is WOULD YOU REPORT FRAUDULENT TRANSACTIONS OF THE CEO. IF YOU WOULD WHAT WILL YOUR CONSIDERATIONS BE TO ANY ACTION YOU WILL TAKE. WILL YOU PUT ECONOMIC BENEFITS AHEAD OF OBJECTIVE REPORTING OF AUDIT FINDINGS.

I have a number of questions that I am currently compiling to determine the independence of the audit fuction as well as factors that will affect that indepence. I would appreciate additional and varying considerarions.
Please take a look at my questions and add what you think is essential.

I also need documented cases of auditors who risked there careers by reporting senior management like the Enron, WorldCom etc.
Email to machachej@bbszw.com, machachej@beverley.co.zw. I ma free to discuss at this research will be published for the benefit of all members of the audit fratenity. The wide the discussion base the more accurae the results. ANY ASSISTANCE WILL BE MOST WELCOME.

The Institute of Internal Auditors

Research Paper for the Institute of Internal Auditors on the Status and Independence of the Internal Audit Function

A draft research questions. Analyze and add more lets discuss.

Jazinda Machache
Group Internal Audit Division
CBZ Group
Ph. (263) 4 - 705001-9 / 706050-2 / 792632 Ext. 2100
Cell. (263) 11 408 448
machache@bbszw.com

machachej@beverley.

The Institute of Internal Auditors

Research Paper for the Institute of Internal Auditors on the Status and Independence of the Internal Audit Function

A draft research questions. Analyze and add more lets discuss.

Jazinda Machache
Group Internal Audit Division
CBZ Group
Ph. (263) 4 - 705001-9 / 706050-2 / 792632 Ext. 2100
Cell. (263) 11 408 448
machache@bbszw.com

machachej@beverley.co.zw

Q1 Yes NO Comment (Type in)
The status of the Internal Audit function affects my effectiveness

Q2 Yes NO Comment
The Head of the Internal Audit is part of the Executive Management

Q3 Yes NO Comment
If Yes to Q3, does his / your involvement in Executive Management affect his / your independence?

Q4 Yes NO Comment
The Head of Internal Audit reports to the CEO administratively and to the audit committee functionally.

Q5 Yes NO Comment
Who sets compensation for the Head of Audit?

Q6 Yes NO Comment
Who hires and fires the Head of audit,

Q7 Yes NO Comment
My salary and other benefits match my status in the organization in comparison to the Organizational structure.

Q8 Yes NO Comment
As an Internal Auditor, job security considerations affect my independency.

Q9 Yes NO Comment
In the process of audit investigations, can you report adverse findings of a damaging nature involving the head of you organization. What are your considerations to reach a decision to report or not to report?

Q10 Yes NO Comment
Where / who do you circulate your audit reports to?

Q11 Yes NO Comment
Who approves the audit charter and plan

Q12 Yes NO Comment
If you have put adverse findings about senior management that relates to any form of abuse of office, can your CEO talk you into removing the damaging material from your report before its finalized? What would be

Q10 Yes NO Comment
Where / who do you circulate your audit reports to?

Q11 Yes NO Comment
Who approves the audit charter and plan

Q12 Yes NO Comment
If you have put adverse findings about senior management that relates to any form of abuse of office, can your CEO talk you into removing the damaging material from your report before its finalized? What would be your course of action if you refuse and your considerations if you did?

Q13 Yes NO Comment
If management, including the CEO have not accepted your findings, are you free to submit the report its draft format

Q14 Yes NO Comment
My Audit Committee chairperson supports me in disagreements with management.

Q15 Yes NO Comment
The Head of Internal Audit is free to decide the scope of his work.

Q16 Yes NO Comment
The Internal Audit department has unimpaired and unlimited access to all company records in the discharge of its duties.

Q17 Yes NO Comment
Which areas of the auditable units do you have the most restriction and which do you have the least restrictions and which are you unrestricted.

Q18 Yes NO Comment
As an auditor and not the Head of Audit, do you perceive that your Head of Audit manages the politics of the organization to the detriment of the independence of the audit function?

Q19 Yes NO Comment
Does your organization have a whistle blower policy and who administers the whistle blower process and policy?

Q20 Yes NO Comment
Is management required to approve reports for the Audi Committee?

Q21 Yes NO Comment
Friendships and relations formed over long service with the same employer affect my independence

Q22 Yes NO Comment
As Head of Audit, I am biased towards management than the shareholders.

Q23 Yes NO Comment
I would consi

It's very encouraging when Auditors engage in topics that indeed affect our work on a daily basis. It was my first time checking this site and i guess it worth it for even other to visit it for information. Kindly keep informing us with any developments in as far as the Internal Audit is concern.

I'm happy to have read some of your comments, they're great.

Dear colleagues, i appreciate a forum where issues relating to the independence of the Auditor is being discussed and advocate the use of this forum since we all know that information is the bane of the profession.

thanks
donald(internal auditor)