Events Tech is a growing media company that specialises in technological solutions for events planning. Events Tech has recently established internal audit department and the Board is keen for this new department to cover certain broad areas of the organisation and add value to the organisation.
Required:
Evaluate FIVE (5) objectives the Board of Events Tech seeks to achieve by establishing an internal audit department. (10 marks)
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Below are the objectives Events Tech seeks to achieve by establishing an internal audit department
- Review of the accounting and internal control systems. The establishment of adequate accounting and internal control systems is a responsibility of management and the directors. Internal audit is often assigned specific responsibility for the following tasks.
Reviewing the design of the systems
Monitoring the operation of the systems by risk assessment and detailed testing
Recommending cost effective improvements
Review will cover both financial and non-financial controls using the COSO Framework. - Examination of financial and operating information. This may include review of the means used to identify, measure, classify and report such information and specific enquiry into individual items including detailed testing of transactions, balances and procedures.
- Review of the economy, efficiency and effectiveness of operations (value for money audit).
- Review of compliance with laws, regulations and other external requirements and with internal policies and directives and other requirements including appropriate authorization of transactions
- Review of safeguarding of assets
- Review of the implementation of corporate objectives. This includes review of the effectiveness of planning, the relevance of standards and policies, the company’s corporate governance procedures and the operation of specific procedures such as communication of information.
- Identification of significant business and financial risks, monitoring the organisation’s overall risk management policy to ensure it operates effectively, and monitoring the risk management strategies to ensure they continue to operate effectively.
- Special investigations into particular areas, for example suspected fraud.