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Internal Audit Charter - CIA Students

This is how to remember Internal Audit Charter Contents. This is series of lectures of Hafiz Muhammad Adnan Rana.

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895 views9 pages

Internal Audit Charter - CIA Students

This is how to remember Internal Audit Charter Contents. This is series of lectures of Hafiz Muhammad Adnan Rana.

Uploaded by

hmad9rana
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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(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 activity


a) Determine if the purpose, authority and responsibility of the internal audit activity are clearly
documented and approved. {P}
b) Determine I the purpose, authority and responsibility of the internal audit activity are
communicated to the engagement clients.{P}
c) Demonstrate an understanding of the purpose, authority and responsibility o the internal
audit activity.{P}
.

Exam Context

CIA Candidates can expect questions on it.

Qualification Context

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

Business Context

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


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

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

Please open the Gliem Book of CIA Part 1 for Internal Audit Charter and your heart stops
beating 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 go
through 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) to


exercise the rights specified.
We learned from above that there are some statements so we will
remember 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
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


REIGN
A 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 the
division 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 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 same
profession. 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 commonly


used in reference to the act of reducing a written work.

Abridgment Example for Muslim students.

Al-Mustadrak alaa al-Sahihain (Arabic: ‫اﻟﻤﺴـــــﺘﺪرك‬


‫ ;ﻋﻠﻰ اﻟﺼﺤﯿﺤﯿﻦ‬Al-Mustadrak 'ala al-Sahîhayn) is a five
volume hadith collection written by Hakim al-
Nishaburi, when he was 72 years old. It contains 9045
hadith. He claimed all hadith in it were authentic
according to the conditions of either Sahih al-Bukhari
or Sahih Muslim or both.

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.
Below are original documents
that we are used in Practice:
-Internal Audit Charter
-Internal Audit Plan
-Internal Audit Status report to Audit Committee

But first
Please study the Gliem Book for overview of what we had had done and tick the
syllabus 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 PDF
Reader)

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