审计风险外文文献

1、精选文库 Independent audit risk analysis and preventive measures Abstract Previous studies have utilized a variety of approaches to determine appropriate criteria to evaluate the effectiveness of the internal audit function. For example, considered the degree of compliance with standards as one of the f

2、actors which affects internal audit performance. A 1988 research report from the IIA-United Kingdom (IIA-UK ，1988 )focused on the perceptions of both senior management and external auditors of the value of the internal audit function. The study identified the difficulty of measuring the value of ser

3、vices provided as a major obstacle to such an evaluation. Profitability, cost standards and the effectiveness of resource utilization were identified as measures of the value of services. In its recommendations it highlighted the need to ensure that audit work complies with SPPIA. In the US, Albrech

4、t et al.(1988)studied the roles and benefits of the internal audit function and developed a framework for the purpose of evaluating internal audit effectiveness. They found that there were four areas that the directors of internal audit departments could develop to enhance effectiveness: an appropri

5、ate corporate environment, top management support, high quality internal audit staff and high quality internal audit work. The authors stressed that management and auditors should recognize the internal audit function as a value-adding function to the organization. In the UK, Ridley and D Silvae(199

6、7) identified th importance of complying with professional standards as the most important contributor to the internal audit function adding value. Key words Audit,Risk, Internal Control, Auditing Compliance with SPPIA A number of studies have focused on the SPPIA standard concerned with independenc

7、e.Clark et al.(1981) found that the independence of the internal audit department and the level of authority to which internal audit staff report were the two most important criteria influencing the objectivity of their work. Plumlee (1985) focused on potential threats to internal auditor objectivit

8、y, Particularly whether participation in the design of an internal control system in flue need judgeme nts as to the quality and effective ness of that system. Plu mlee found that such desig n invo Iveme nt p roduced bias that could ultimately threate n objectivity. The relationshipbetween the inter

9、nal audit function and company man ageme nt more gen erally is clearly an imp orta nt factor in determ ining internal auditor objectivity. Harrell et al. (1989) suggested that perceptions of the views and desires of man ageme nt could in flue nee the activities and judgeme nt of in ternal auditors.

10、Also, they found that in ternal auditors who were members of the IIA were less likely to succumb to such p ressure .Ponemon (1991) exam ined the questi on of whether or not in ternal auditors will report sen sitive issues uncovered during the course of their work. He concluded that the three factors

11、 affecting internal auditor objectivity were their social position in the organization, their relationship with management and the existenee of a com muni cati on cha nnel to report wron gdo ing. The independence of internal audit dep artme nts Commentators and standard setters identify independence

12、 as being a key attribute of the internal audit dep artme nt. From the questio nn aire res pon ses 60 (77%) of the internal audit departments stated that there was a written docume nt defi ning the purp ose, authority and res pon sibility of the dep artme nt. In n early all in sta nces where there w

13、as such a docume nt the terms of refere nee of the internal audit dep artme nt had bee n agreed by senior man ageme nt (93%), the document identified the role of the internal audit department in the organization, and its rights of access to individuals, records and assets (97%), and the document set

14、 out the scope of internal auditing (90%). Respondents were asked to assess the exte nt to which the releva nt docume nt was con siste nt with the specific requirements of SPPIA. In those departments where such a document existed 27 (45%) claimed full complianee with SPPIA, 23 (38%) con sidered thei

15、r docume nt to be p artially con siste nt with SPPIA. In more tha n on e-third of the dep artme nts surveyed either no such docume nt existed (n=18, 23%) or the respondent was not aware whether or not the docume nt comp lied with SPPIA (n=10, 13%). SPPIA suggests that independence is enhanced when t

16、he organization board of directors con curs with the appoin tme nt or removal of the director of the internal audit department, and that the director of the internal audit dep artme nt is res pon sible to an in dividual of suitable seni ority with in the organization. It is noticeable that in 47 com

17、panies (60%) their responsibilities with regard to appointment, removal and the receipt of reports lay with non-senior management, normally a general manager. SPPIA recommends that the director of the internal audit dep artme nt should have direct com muni cati on with the board of directors to ensu

18、re that the department is independent, and pro vides a mea ns for the director of internal audit ing and the board of directors to kee p each other in formed on issues of mutual in terest. The in terviews with directors of internal audit departments showed that departments tended to report to gen er

19、al man agers rather tha n the board of directors. Further evide nee of the lack of access to the board of directors was pro vided by the questi onn aire responses showing that in almost half the companies, members of the internal audit department have never attended board meetings and in only two co

20、mpanies did atte ndance take pl ace regularly. Un restricted access to docume ntati on and un fettered po wers of enquiry are important aspects of the independence and effectiveness of internal audit. The questionnaire responses revealed that 34 (44%) internal audit directors considered that they di

21、d not have full access to all necessary information. Furthermore, a sig nifica nt mi nority (n=11, 14%) did not believe they were free, in all in sta nces, to report faults, frauds, wron gdo ing or mistakes. A slightly higher number ( n=17, 22%) considered that the internal audit function did not al

22、ways receive con siste nt support from senior man ageme nt. SPPIA ide ntifies that invo Iveme nt in the desig n, in stallati on and op erati ng of systems is likely to imp air in ternal auditor objectivity. Respondents were asked how often management requested the assistanee of the internal audit de

23、partment in the performanee of non-audit duties. In 37 internal auditdepartments (47%) surveyed such requests were made sometimes, often or always, and only 27 (35%) departments never participated in these non-audit activities. The in terviews revealed that in some orga ni zati ons in ternal audit s

24、taff was used regularly to cover for staff shortages in other dep artme nts. Woodworth and Said (1996)sought to ascertain the views of internal auditors in Saudi Arabia as to whether there were differe nces in the react ion of auditees to specific internal audit situations according to the nationali

25、ty of the auditee. Based on 34 questi onn aire res pon ses from members of the IIA Dhahra n cha pter, they found there were no sig ni fica nt differe nces betwee n the differe nt n ati on alities. The in ternal auditors did not modify their audit con duct accordi ng to the nationality of the auditee

26、 and cultural dimensions did not have a sig nifica nt impact on the results of the audit. Given the importanee of complying with SPPIA, the professional and academic literature emp hasizes the imp orta nee of the relati onship betwee n the internal audit department and the rest of the organization i

27、n determining the 7 success or otherwise of internal auditdep artme nts (Mints,1972;Flesher,1996;Ridley the audit working papers incomp lete, gen erally only Records of audit matters, not the record ing of audit staff that the correct audit matters, making the audit review, audit quality con trol no

28、 way; to coord in ate the relati onship betwee n the audit report as a starti ng point to certain performance-based, qualitative ambiguous issues. More than the existe nee of the status quo, making the internal audit quality assura nee become an empty talk, let alone ward off risks. Secon d, reduce

29、the risk of internal audit ways 1. Stren gthe n the in ternal audit of the legal system Improve and perfect the l egal system for the audit of internal audit is the basis of risk con trol measures. Audit no rms, the audit staff cod e of con duct and guideli nes, not only to control and reduce audit

30、risk, but also to measure auditors liability sta ndards. Chin as internal audit late start comp ared with Wester n coun tries in the releva nt system-build ing there are many imp erfect ions. In order to ada pt to the con ti nu ous devel opment of mod ern internal audit requireme nts, it is n ecessa

31、ry to stre ngthe n the audit work of legalizati on and sta ndardizati on con struct ion to mini mize the audit work of bli ndn ess and randomn ess. 2. To en sure the independence of in ternal audit The independence of the internal auditor can make a fair and impartial professional judgment, which is

32、 appropriate to carry out the audit work is essential. The independence of internal audit bodies connotation should be reflected mainiy in the form of independence and de facto independence in two ways. Formal ind ependence requireme nts of internal audit in the orga ni zati on of orga ni zati ons w

33、ith high status, the internal auditor shoul d have access to senior man ageme nt and board of directors supp ort. Esse ntially refers to an ind ependent internal audit staff in the spirit of the need to maintain the necessary independen ce, should be a fair and just manner and avoid con flicts of in terest, in carry ing out in ternal audit work, to mai ntain an hon est belief in comp lia nee with the Code of Ethics for the entire audit process does not make a significant compro mise. Access to senior management and board of directors support. Essentially refers to an ind ependen