(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 exercise the rights specified.

(Internal Auditors) to

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 alNishaburi, 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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