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Auditing Checklists


The Checklists section provides a comprehensive handbook of practical answers to the daily challenges of modern finance. Each checklist is a step-by-step guide to achieving the best results in areas including hedging interest rate risk, governance practices, project appraisal, estimating enterprise value, and managing credit ratings. Each checklist reflects current thinking and best practice, and includes a list of dos and don'ts as well as critical reflection on the topic at hand.

  • Adopting an Internal Audit Capability Model
    An internal audit capability model (IACM) provides a framework for assessing the quality, impact, and cost-effectiveness of an internal audit activity. It also identifies the fundamentals needed for effective internal auditing and describes the levels and stages through which internal audit activity can develop and improve processes and practices. The Institute of Internal Auditors (IIA) produced an “Internal Audit Capability Model for the...
  • Auditing Information Technology and Information Systems
    The benefits of information technology (IT) are accompanied by a need to manage the complexities, risks, and challenges that come with it. Auditing IT and information systems involves auditing an organization’s hardware, software, and data organization and processing methods to ensure quality control and security. It certainly does not involve the popularly held belief that it amounts to merely counting computers. Even the smallest companies are...
  • Avoiding Conflict of Interest in Internal Audits
    Every year a company undergoes an external audit and will also undertake a program of internal auditing. Using external auditors to carry out internal audit work can lead to a conflict of interest. A conflict of interest may also occur when an internal auditor has a personal or professional involvement or association with the area that is subject to the audit.There are two essential elements that apply to ensure that such conflicts of interest...
  • Choosing an External Auditor
    This checklist provides an overview of how to choose and appoint an external auditor.
  • Cosourcing Internal Audits
    The internal audit departments of even the largest organizations cannot afford to employ the technical and expert resources required to meet all the requirements that they are likely to encounter at all times. By using cosourcing, organizations can tap into specialized skills that are not available inhouse. Cosourcing gives organizations access to world-class, global internal audit resources and capabilities, along with access to...
  • Creating a Comprehensive Audit Committee Evaluation Form
    This checklist outlines a range of measures companies can take to help ensure that audit committees are performing their roles effectively.
  • Establishing a Framework for Assessing Risk
    This checklist outlines why and how a business institutes a framework for assessing risks and responsibilities within an organization.
  • Independence of the Internal Audit Function
    If an internal audit is to prove effective, the auditors must have complete independence to carry out the audit as they see fit and must be free from interference by executives. However, as the Institute of Internal Auditors (IIA) points outs:1“The internal auditor occupies a unique position—he or she is ‘employed’ by management, but is also expected to review the conduct of management. This can create significant tension since the internal...
  • Internal Audit Charters
    An internal audit charter is a formal document approved by the audit committee. It should be developed by the chief audit executive and agreed at the highest level of the organization. Standards published by the Institute of Internal Auditors (IIA) require that there be an internal audit charter, but there is no fixed requirement for what it should contain. At a minimum, the IIA standards require a charter to define the purpose, authority, and...
  • Internal Auditing and Doing Business in Foreign Countries
    As companies increasingly expand abroad, chief audit executives face a host of new and unexpected challenges. Operating abroad in unfamiliar political environments exposes businesses to new types of risks and complexities, which can threaten business performance. These risks can range from differences in regulatory and compliance practices to those that violate domestic law, such as the US Foreign Corrupt Practices Act 1977, as well as political...
  • Internal Auditing for Financial Firms
    In view of the recent global recession of 2009–10, when investments made by banks and financial institutions proved unsafe and almost triggered a financial meltdown that required strong input and investment by most democratic governments, the need for internationally regulated and well-audited financial institutions is greater than ever. Therefore, financial institutions have started to concentrate on rigorous internal audit processes undertaken...
  • Internal Auditing for Fraud Detection and Prevention
    Fraud protection is a key concern for businesses, and internal audits can play a major role in both detecting and preventing fraud. According to the Institute of Internal Auditors (IIA), for example, “internal auditors support management's efforts to establish a culture that embraces ethics, honesty, and integrity” and “they assist management with the evaluation of internal controls used to detect or mitigate fraud, evaluate the organization’s...
  • Internal Auditing for Small and Medium-Sized Enterprises (SMEs)
    Internal audits can have a range of functions, from determining the financial health of an organization to looking at how efficient and effective it is. Internal audits can also assess the nonfinancial areas of an entity. However, small and medium-sized enterprises (SMEs) have particular needs in terms of internal auditing. The accounts of very small businesses, for example, are less complex than those of larger organizations, and they can...
  • Internal Auditing for the Public Sector
    Governments and government departments in democratic societies are subject to internal audit. This is essential to assess whether the departments are run efficiently and provide good value for taxpayers’ money.The UK government’s internal audit standards (HM Treasury, 2011) define internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Its scope is to help...
  • International and Multinational Internal Auditing
    Internal audit activities are performed in diverse legal and cultural environments and within organizations that vary in purpose, size, and structure; and by persons within or outside the organization. These differences may affect the practice of internal auditing in each environment. Standards have been established by bodies such as the International Federation of Accountants (IFAC) to ensure that internal audits are carried out to the same...
  • Key Competencies for Internal Auditors
    Internal auditors work in many organizations in the public and private sectors. They can either be trained while working or will possess an internal audit or accountancy qualification before applying for an internal audit position. However, other qualifications can also be useful as the work is varied, challenging, and draws on a broad range of skills.However, there is a range of key competencies that are required if internal auditors are to...
  • Key Components of a Corporate Risk Register
    This checklist outlines the key components and processes of a corporate risk register.
  • Preparing and Executing an Internal Audit Review
    This checklist provides an overview of how to prepare and execute an internal audit review.
  • Quality Assessment of Internal Audits
    Most countries have established standards that aim to improve the quality of internal auditing services. In the United Kingdom, for example, HM Treasury has established the Internal Audit Quality Assessment Framework (IAQAF), a tool for evaluating the quality of the internal audit service in an organization. HM Treasury says that the IAQAF is intended to: “facilitate identification of actions for continuous improvement; facilitate evaluation of...
  • The Chief Audit Executive’s (CAE) Roles and Responsibilities
    This checklist outlines the roles and responsibilities of the Chief Audit Executive (CAE) as the principal independent internal auditor in an organization.
  • The IIA Code of Ethics
    This checklist looks at the purpose of the code of ethics of the Institute of Internal Auditors and considers some of the advantages that membership of the Institute can bring.
  • The International Organization of Supreme Audit Institutions (INTOSAI) and Their Congress (INCOSAI)
    This checklist outlines what the International Organization of Supreme Audit Institutions (INTOSAI) and the International Congress of Supreme Audit Institutions (INCOSAI) are, and what they have been set up to achieve.
  • The Key Components of an Audit Report
    This checklist outlines the key components of an audit report.
  • The Role of the Audit Committee
    The audit committee is an operating committee that deals with financial reporting and disclosure of the financial situation of a company. Since the Sarbanes–Oxley Act of 2002, the committee’s role has become essential to a company’s financial wellbeing. Depending on the size of a company and whether it is private or public, the audit committee is composed of three to six members with financial, accounting, and auditing experience.The role of an...
  • Understanding Internal Audits
    This checklist provides guidelines for identifying internal audit resource requirements.
  • What Is Forensic Auditing?
    This checklist provides an overview of forensic auditing and examines how managers can put the techniques to work to protect their businesses against waste, abuse, and various forms of economic crime, such as fraud.
  • XBRL (eXtensible Business Reporting Language) and Internal Auditing
    XBRL (eXtensible Business Reporting Language) is a computer language for the electronic transmission of business and financial data. The goal of XBRL is to standardize the automation of business intelligence and thus create a global standard for sharing business information. XBRL uses tags to describe and identify each item of data in an electronic document. The tags allow computer programs to sort through data and analyze relationships quickly...

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