Internal Auditing Fundamentals

Understand the fundamentals of an internal audit and recognize key risks and objectives when preparing for an internal audit.

Many people outside of internal audit groups do not understand the benefits of internal auditing. They believe internal audits only revolve around financial items and are similar to external audits. There are several types of internal audits that are not only compliance oriented but opportunities for process improvement and saving money. Part of the responsibility of the internal auditor is sell the positive attributes of internal auditing. The topic will include how to perform internal audits and sell your findings and conclusions. There will be stories from the field such as the Big Red Button, the oily fingers audit that saved over $1 million and how an internal audit turned a company’s $300 million division to a profit versus a deficit for the year. There will also be a discussion on getting out there in the field (site visits, calls, and observations). This material will also review internal audit reporting at various levels and discuss the benefits of networking and training in internal audit field and your industry.

Learning Objectives

• You will be able to describe the fundamentals of an internal audit in a positive light.
• You will be able to discuss how an internal audit can assist an organization meet its objectives and report on your findings and/or how the organization under audit is meeting its objectives.
• You will be able to explain the different types of internal audits and the difference between internal and external audits.
• You will be able to recognize key risks and audit objectives.