ROLE OF AN INTERNAL AUDITOR

1. Risk Management – Advise the management to setup the best procedure in running
operation with standard guidelines.
2. Control – To enforce, monitor, evaluate and improve the effectiveness of the risk
management.
3. Governance – Provide assurance that the entity had complied with all the laws
applicable, policies and procedures that satisfied the needs of the stakeholders.

Purpose of Operational Audit

5 Critical Factors IA as Reputable
To review5 and
types of IA
evaluate anyactivities
routine or day to day
Profession 1. Financial
operation Audit – Go
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1. The Internal Auditor may acquire a budget towards the activity, accounting
improved
systems, compliance with the entity strategy.
Reason 2. Operational Audit – Monitor, evaluate and
improve day to day activities and routine.
1. To minimize ineffective management 3. Management Audit – To ensure the
that will affect to the performance of management comply with governance
the entity. control, internal procedures and minimize the
2. to avoid any loophole or potential risk management risk.
that can be occur from inside or 4. Compliance Audit – To ensure the entity
outside party towards the entity. comply with regulation and standard that the
3. To ensure the entity can minimize entity bind such as ISO certification or Halal
fraud and error to the acceptable level. Certified.
4. To ensure the entity keeps relevant 5. Fraud/Forensic Audit – Directly involved
and stay competent. with prevention and detection of fraud in any
form or extent in any activity reviewed.

Certified Internal Auditor

2. The entity should appoint Audit Committee to respond on the report made by the Internal
Auditor, so that the opinion will be taken as serious matters.
3. Must purely independent department and no conflict of interest to any other areas in the entity.
4. Internal Auditor must bind with professional code of ethics.
5. Had freedom to do audit activities whenever, wherever.

Internal Auditor External Auditor

Reporting Responsibilty Audit committee/board of director Shareholders
Status Part of employees or outsource Independent third party
Stakeholder Needs of an organization Third party rely on financial report
Frequency of Audit Continuous By period (interim or yearly)