Traditionally internal auditors have carried out a “policing” role. The major shift of focus towards making a positive contribution in risk management in an organization is a significant challenge for the internal audit function in many countries.
International Good Practices and Reference Models
Internal Auditing in the Public Sector a Consultative Forum in Nairobi, Kenya, Shores up Best Practices for Government Audit Professionals in Developing Nations:In this paper the Internal Auditor Publishing describes the findings from a consultative forum that brings out the experience of audit professionals in different stages of public finance auditing.
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Guidance and Tips
Good Practice Guide: Audit Strategy (UK Treasury): This guide offers good practice guidance on the development of a comprehensive internal audit strategy which will be capable of delivering an opinion to the Accounting Officer on the whole of an organization’s risk management, control and governance. It provides assistance aimed to deliver the optimum audit product and also offers some direction in the key potential circumstances in which it may not be achievable.
Beyond Traditional Audit Techniques (Journal of Accountancy): Tips and guidelines from the COSO framework on thinking beyond the traditional audit techniques by the internal auditors’ team.
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Country Case Studies and Lessons Learnt
Internal Audit The Neglected Element In The Governance And Financial Management Reform Program: The Case Of Ghana: The Neglect Or Absence Of An Effectively Functioning Internal Audit Organization in Ghana creates a vacuum in the country’s governance and financial management reform efforts and initiatives. We also recognize that without a model or framework it is difficult to chart the prognosis of the remedy being administered.
A Comparative Study About Internal Auditing Approach Between Germany And China (Prepared by the Southwestern University of Finance & Economics, College of Accountancy): This paper describes a comparative study exploring some key differences between the internal audit system in China and its counterpart in Germany – from the following five important aspects: the origin and development of internal audit, the structure of internal audit system, the relationship between firms’ internal audit and the government agency, the responsibility and accountability of internal audit, and the quality of internal auditors.
Fraudulent Financial Reporting 1987-1997: An Analysis of U.S. Public Companies: (Commissioned by the Committee of Sponsoring Organizations of the Treadway Commission):This report has analyzed the financial reporting fraud in the US companies for the given years and the research results will be extremely useful to investors, regulators, stock exchanges, boards of directors, and external auditors.
Internal Audit: Finding Its Place in Public Finance Management (Published by the World Bank Institute):This World Bank paper describes the role of internal audit in public finance management with some examples and case studies from the developing world.
International Audit Trends in the Public Sector (Published by the Internal Auditor): A comparison of internal audit functions in the governments of six OECD countries (Australia, Canada, the Netherlands, Sweden, the United Kingdom, and the United States) finds similarities in legal requirements, organizational structure, and future challenges.
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Other Reference Materials
Best Practices for Internal Audit in Government Departments: This paper describes how an effective internal audit system can lead to improved accountability, ethical and professional practices, effective risk management, and an enhanced financial management reformation.
Distributor Sales Review (from Protivity): This document is a sample internal audit report for a fictitious company. It illustrates potential improvements to the effectiveness and usefulness of public sector internal audit reports.
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