Chapter I

THE PROBLEM AND ITS BACKGROUND

Introduction

Nowadays, businesses operate in a fast, competitive, and ever-changing

environment. Their success is based on adapting to environmental changes, fulfilling
organizational objectives, and managing risks as the business landscape evolves
every day.

Companies increased their interest in internal control and internal audit to

assure shareholders and manage those risks. "Internal Auditor's objectivity,
perspective, and skills can assist stakeholders and provide valuable insight."

Internal audit is an independent and objective activity that evaluates the

operation of the System of Internal Controls of enterprises or organizations and
provides advice to achieve the objectives at the lowest cost. At the same time, it
contributes to improving its operations and uses its controls to mitigate the risks
lurking in the company.

The Internal Audit is performed in all the operations of an organization, such

as management, financial statements, and of course, the protection of the
organization's assets. All the operations can be performed by Internal audit except
those that do not present interest in the audit function. In this way, an internal audit
controls all the parts of an organization and ensures if any deficiencies exist.

It is challenging to solve all the issues that a business is facing, and that's why
companies use internal audits to reduce or mitigate the risk significantly. The
measure that the organization should consider is the protection of the assets, the
reliability, and the accuracy of the accounting records.

This study aimed to investigate the effectiveness of internal audits in fraud

detection and prevention in the Ministry of Finance. Specifically, the study was
guided by the following objectives: (1) To determine whether internal control and
internal audit control systems exist and their effectiveness. (2) To identify the extent
to which internal audit standards are adhered to at the Ministry of Finance in terms of
accountability, transparency, expertise, and the effeteness of fraud detection and
prevention. (3) To recommend the MoF the best strategy for prevention and fraud
detection. The study was carried out in Windhoek at the MoF headquarters.

To achieve these objectives, the researcher used a mixed-method approach

though more weight was put towards the qualitative approach, which used non-
structured questions to capture the respondents' opinions. The data were analyzed
and interpreted using graphs, charts, and statistics to enable the researcher to
examine the relationships and trends about the effectiveness of internal audits in
fraud detection and prevention in the MoF.

The findings revealed, among other things, that there is inadequate

adherence to internal audit standards, lack of objectivity in the auditing exercise, lack
of independence from employers, insufficient skills among internal auditors, and
insufficient facilities at the internal audit division. The respondents also
recommended strategies to enhance the effectiveness of internal audits in fraud
detection and prevention in the MoF.

The auditor performs the audit, which follows specific rules - standards of
professional conduct. These rules are called audit work standards (Standards of
Fieldwork), and their purpose is to achieve the audit procedures. This study seeks to
investigate the effectiveness of internal control and internal audit in the detection of
possible fraud, but also to highlight its importance in preventing fraud.

Background of the Study

An essential condition for the survival of a company or, more generally, of an

organization lies in the ability of its members to act reliably and efficiently to achieve
the organization's objectives. The substantial coordination of behavior can be
completed in numerous ways. In a tiny business, the manager can verify directly that
the tasks are performed in the way he thinks is suitable. But the supervision of the
manager and the mutual adjustment among various actors Mintzberg (1982) quickly
became insufficient when the number of the firms increased. However, it may be
wished to maintain these ways of controlling but it would only be applied to the part
of the organization.

It is necessary that management put mechanisms to fill the gap in

supervision. Business performance is a significant concern these days due to the
importance of global competition. One factor of this performance lies in its
performers' ethical and responsible behavior. But at the end of the 20th century, the
Enron and WorldCom scandals show a lack of control in organizations (Bertin,
2007). Following these financial scandals, actions were taken. It has become
essential to provide an ethical control in the interest of leading to better take into
account the content of internal control to overcome the weaknesses of economic and
legal support.

In a common interest, ways to measure the impact of moral decisions have

been found, and the company must be able to justify its activities (Ethical norms and
values); this control may be performed by the internal audit (Mercier 2000).

Once the purposes have been defined, success depends on determining

appropriate strategies and implementing them. Organizational arrangements must
ensure performance in both economic and strategic scopes and we call internal
control the combination of such devices.

It is necessary to periodically test the effectiveness and suitability of a

particular aspect of internal control. Auditing is the process of studying and
evaluating internal control and sure of its parts, as well as its expected performance.
The following result may help to determine the effectiveness of the company. It is
something important because the challenges of every business day are for the
companies to be competitive so as not to be forced out of the market.

An internal audit is a management tool used to ensure transparency in

business conduct. Auditing took the entire stage after the industrial revolution since
before this period, transactions increased, precipitated by the development of large
corporations limited liability companies, and there became the need for divorce of
ownership from control. Hence managers and shareholders became two different
partners.

Then it became apparent for managers to render accounts of their

stewardship to those who have pooled their resources together for the business. It is
noteworthy that an independent person is appointed to represent the interest of the
shareholders in reviewing the report of managers to ensure accuracy and
transparency. This is how auditing started.

Moreover, the analysis intends to point out the advantages that an internal
audit can offer to the entity's management. According to the International Standards
for the Practice of Internal Auditing (Standards) (IIA 2009a), the role the audit fills in
improving the organization's performance implicitly leads to more responsibilities for
the internal auditors in identifying and finding fraud.

The Internal Audit Department provides a reliable, objective, and impartial

service to the management, board of directors, and audit committee. In turn,
stakeholders are interested in return on investment, sustainable growth, strong
leadership, and reliable reporting on a company's financial performance and
business practices. Proper understanding of the role and importance of the internal
audit is one of the preconditions for successful strategy implementation and
achievement of company goals (Cascarino & Van Esch, 2007). 2 Dependable
information is essential to the very existence of society. The investors deciding to
buy or sell securities, the banker deciding whether to approve a loan, and the
government in obtaining revenue based on income tax returns all rely upon the
information provided by others.

It derives from the Latin' audits', meaning 'hearer' (Cascarino & Van Esch,
2007). Auditing, in general, involves an annual risk assessment and planning
exercise to determine the overall audit coverage, which is followed by individual audit
planning.
 Notwithstanding the provision of these codes, suitably qualified committee
members with some levels of independence are essential to an efficient audit
committee. Otherwise, there will be no assurance of adequate internal controls,
processes, and systems in place. Kauaria (2005) observes an absence of a practical
internal audit function in the government ministries in Namibia. Furthermore, Masawi
(2012) states that most Namibian companies do not represent qualified board
members and audit committee members, while political appointees dominate public
institutions. This situation compromises the efficiency within SOEs and government
ministries, being the most affected institutions. This paper presents the following
objectives against this background and problem.

Theoretical Framework

Several theories have been used about internal audit effectiveness, notably,
agency theory (Adams 1993; Endaya & Hanefah 2013; Okodo, Aliu & Yahaya 2019),
resource-based theory(Alkebsi & Aziz 2018; Alqudah, Amran & Hassan 2019;
Nasibah 2015), transaction cost theory (Endaya & Hanefah 2013; Sarens &
Abdolmohammadi 2011), resource dependency theory (Dittenhofer 2001; Goodwin-
Stewart & Kent 2006), institutional theory (Al-Twaijry, Brierley & Gwilliam 2003;
Endaya & Hanefah 2013; Okodo, Aliu & Yahaya 2019) and Marx's view of the circuit
of industrial capital (AbuAzza 2012; Mihret, James & Mula 2010).

According to Endaya and Hanefah (2013), there is a lack of consensus among

researchers on a specific theory associated with the effectiveness of the internal
audit. There is also limited research on approaches that might assist in building an
appropriate theoretical framework for internal audit effectiveness. Nasibah (2015)
and Alqudah, Amran, and Hassan (2019) propose that resource-based theory could
create a theoretical framework for the effectiveness of the internal audit.

It is essential first to provide an overview of the development of the resource-

based theory. Researchers and practitioners have been striving to comprehend the
likely sources of competitive advantage. Most research to date has focused on the
internal environment of the firm. Until 1990, both these environments were
unquestionably related to the organization's development. However, considerable
attention was given to the external environment to discern the probable source of
competitive advantage (Kazlauskaitė & Bučiūnienė 2008). Further, the resource-
based theory was expanding its focus from the organization's external environment
to include the internal context.

Several theories have been used about internal audit effectiveness, notably,
agency theory (Adams 1993; Endaya & Hanefah 2013; Okodo, Aliu & Yahaya 2019),
resource-based theory(Alkebsi & Aziz 2018; Alqudah, Amran & Hassan 2019;
Nasibah 2015), transaction cost theory (Endaya & Hanefah 2013; Sarens &
Abdolmohammadi 2011), resource dependency theory (Dittenhofer 2001; Goodwin-
Stewart & Kent 2006), institutional theory (Al-Twaijry, Brierley & Gwilliam 2003;
Endaya & Hanefah 2013; Okodo, Aliu & Yahaya 2019) and Marx's view of the circuit
of industrial capital (AbuAzza 2012; Mihret, James & Mula 2010).

According to Endaya and Hanefah (2013), there is a lack of consensus

among researchers on a specific theory associated with the effectiveness of the
internal audit. There is also limited research on approaches that might assist in
building an appropriate theoretical framework for internal audit effectiveness.
Nasibah (2015) and Alqudah, Amran, and Hassan (2019) propose that resource-
based theory could create a theoretical framework for the effectiveness of the
internal audit.

It is essential first to provide an overview of the development of the resource-

based theory. Researchers and practitioners have been striving to comprehend the
likely sources of competitive advantage. Most research to date has focused on the
internal environment of the firm. Until 1990, both these environments were
unquestionably related to the organization's development. However, considerable
attention was given to the external environment to discern the probable source of
competitive advantage (Kazlauskaitė & Bučiūnienė 2008). Further, the resource-
based theory was expanding its focus from the organization's external environment
to include the internal context.
Conceptual Framework

The fundamental role of internal audits in organizations has driven extensive

research in this area. Researchers support the need for a strong IAF in public sector
organizations because it adds credibility (Alzeban & Gwilliam 2014; Sobel 2015).
Cohen and Sayag (2010) point out that the primary objective of an internal audit is to
improve the efficiency and effectiveness of a firm's operations. According to
Whittington and Pany (2010), internal auditors play a pivotal role in fraud prevention
compliance with regulations and internal control systems in the public and private
sector alike. 40 Asiedu and Deffor (2017) examined internal audits concerning
corruption and fraud in the developing world. They noted that there was little
evidence to suggest that internal audits had any impact on crime, accountability, and
transparency in the developing world.

This demonstrated the need to conduct further research on internal audit as a

proxy to help promote transparency, foster a culture of accountability and reduce
corruption in developing countries. More importantly, developing countries have
unique challenges and settings that call for more research to elucidate how internal
auditors can support public organizations in all these respects. To measure the
quality of the IAF, Ridley (2008) explains that the three 'E's, economy, efficiency, and
effectiveness, can be used to measure the internal audit role.' Ridley (2008) further
argues that the economic measures the extent of IAF's use of limited resources in
performing its tasks. Efficiency evaluates the connection between the performance of
the IAF and the resources employed. Effectiveness emphasizes the accomplishment
of the output of the IAF. In contrast, other studies indicate that despite the financial
ability or the efficiency of an IAF, it will be futile if the internal audit is ineffective
(Lenz & Hahn 2015; Dellai & Omri 2016).

A meta-analysis by Kwon and Banks (2004) concluded that the auditor's

commitment to the organization is strongly related to the job's meaningfulness. The
internal audit goes beyond functioning simply as a fraud detection mechanism. It
involves examining and determining internal controls to ascertain their adequacy,
assessing the accuracy and appropriateness of financial reports and related records
to ensure compliance with rules and regulations, and providing the effective and
efficient use of economic resources at the disposal of management and employees.
As mentioned earlier, internal audit has undergone conceptual changes over time,
which have gradually influenced its scope and role (Mihret & Yismaw 2007; Soh &
MartinovBennie 2011)

According to Bou-Raad (2000), internal auditors of the earlier period assumed

the role of supervisors of a given organization's finances, ensuring that all figures
were accurate and all accounts were in order. As indicated by Onumah and Yao
(2012), the internal auditor would become the eyes and ears of the top management,
thereby adding value and improving the procedures of both governmental and non-
profit organizations. Further, effective and efficient internal auditors help establish,
and 41 maintain a good reputation for the organization by providing positive findings
and giving productive guidance. Internal auditors also have to ensure that public
funds are distributed and spent in line with the orders of public authorities and that
financial statements conform to applicable laws (Alzeban & Gwilliam 2014; Sobel
2015).

Therefore, it was not considered necessary to improve the existing internal

auditing systems, especially in the absence of organizational capabilities such as
sophisticated accounting systems. According to Enofe et al. (2013), internal auditing
produces constructive criticism to help organizations become more efficient. This is
in line with Bou-Raad (2000) and Asiedu and Deffor (2017), who assert that internal
audit identifies defects, ensures the correction of those defects, and prevents
modifications from turning back into defects.

The implication is that the principal purpose of an internal audit is to identify

weaknesses and provide possible remedies for those weaknesses. Silva, Inácio, and
Vieira (2019) summarize the objectives of internal auditing, which can be seen as
advice.
 The study indicated that internal auditors provided an additional guarantee,
ensuring sound financial control in the public sector. In Ghana, Tackie et al.
(2016) found high compliance with international standards and local regulations,
adequate qualifications of internal auditors, and effective IAFs in local
government. They attribute these favorable results to internal audit's
professionalism, independence, and career advancement. However, the authors
also revealed that lack of top management support harmed internal audit
effectiveness. In Tunisia, Omri (2016) found that factors contributing to internal
audit effectiveness were independence, objectivity, management support, using
the IAF as a management training ground, and the organization's sector.

A similar study on the public sector by Shamki and Alhajri (2017) in Oman
found a significant correlation between internal audit effectiveness and the
experience of internal audit employees. However, an insignificant relationship was
found when analyzing managers' responses. The study also revealed no
association between internal audit effectiveness and senior management's
response. Employee conscientiousness needs to be improved to collaborate with
internal auditors in the Omani public sector. In Singapore, Yee et al. (2008)
conducted interviews with managers at senior, middle and junior levels who were
internal audit users from 25 organizations.

The study revealed that both senior and junior managers viewed the role of
the IAF as a partner while middle managers frequently regarded internal audit
services in a negative light, perceiving internal auditors simply as 'watchdogs.'
The study concluded that internal audit activities could be enhanced when the
association between auditor and auditee are established in a cooperative and
participative manner 50 In Indonesia, Gamayuni (2018) used questionnaires to
examine the effectiveness of the IAF concerning the quality of financial reporting.

The study results revealed that the quality of financial reporting positively
influenced the effectiveness of the IAF. Various weaknesses of the IAF were
identified, particularly in terms of resource administration, notably reporting to the
owner, coordination, developing programs, quality control, and compliance with
rules and regulations. Gamayuni (2018) suggested that the local government
should address any insufficiencies to enhance financial reporting quality. 3.4.3
Prior Studies on Internal Audit Effectiveness in the Saudi Arabian Public and
Private Sectors There have been relatively few studies on internal audit efficacy in
the Saudi public sector. (Alzeban & Gwilliam 2014; Alzeban & Sawan 2013)
investigated the internal audit effectiveness of 79 public sector organizations in
Saudi Arabia by surveying 203 managers and 239 internal auditors.

Management support determined effectiveness, as perceived by both

managers and internal auditors. Management support referred to hiring
competent staff, providing adequate resources, the relationship of internal audit
with external auditing, and the degree of independence of the IAF. In another
study, Alzeban and Sawan conducted 29 semi-structured interviews with nine
internal auditors, ten general and senior managers in the Saudi public sector, and
ten external auditors from the GAB.

The study also revealed that listed companies' use of IAF amounted to little more
than symbolic compliance with capital 51 market rules. In another study, Al-
Twaijry et al. (2003) used two questionnaire surveys and interviews and found
that internal auditing in Saudi Arabia was inadequately developed. IAFs were
understaffed, underqualified, and under-resourced. There were also restrictions
on their independence and compliance audits were conducted in place of
performance audits.

Moreover, internal auditors were not welcomed by management or

auditees. Albany (2015a) examined the impact of cultural factors on the quality of
internal audits in the private sector of Saudi Arabia. The responses of chief
internal auditors from 67 listed companies were gathered to examine the direct
influence of cultural dimensions such as power distance, uncertainty avoidance,
and individualism on internal audit quality.

The findings revealed a significant association between individualism and

the quality of the IAF in Saudi Arabian companies, emphasizing that internal audit
performance is mainly based on the achievements of the individual internal
auditors and the professionalism associated with the procedure. The result of the
study also showed that the greater the power distance and uncertainty avoidance,
the lower the quality of internal audit.

These findings reflect Saudi Arabian views where both cultural and
economic situations are supported more by collectivism than individualism. It is
only in recent years that governance and auditing were introduced into Saudi
Arabia and that solid cultural elements, which according to Alzeban (2015a), are
rooted in tribalism, represent the environment within which the desired state of the
IAF can be allowed to function.

The IAF must also gain the trust and confidence of management and other
departments to ensure access to complex data and obtain access to information.
Further, employee behavior can enhance confidence in internal audit
effectiveness; however, poor employee behavior, including management, can
lower internal audit effectiveness. To illustrate this point, inadequate
communication skills, lack of dialogue, and insufficient responses from
management and employees can hinder the effective operation of internal audits,
leading to a lack of confidence in IAFs.

Consequently, changes in culture are the responsibility of the internal

auditors, who need to understand and keep up with the organization's culture. Al-
Alawi et al. (2007) examined the access to knowledge-sharing within the context
of organizational culture. Critical factors in corporate culture included
communication among staff, rewards, information systems, interpersonal trust,
and organizational structure. The findings revealed that these factors played a
crucial role in defining employee relationships.

For instance, in cases where internal auditors started to ask specific

questions to ensure that regulations were implemented and processes were
followed, employees believed that any mistakes would immediately be reported to
management.

Previous studies have shown the impact of organizational culture on both

organizational behavior and the individual. The collaboration between managers,
employees and internal auditors is paramount for any organization. Consequently,
a positive corporate culture is necessary for the success of any organization and
can be used to manage staff and keep them aligned with organizational goals.

Organizations need to understand that their chances of success hinge on

how well they can motivate their employees to work to the best of their ability in
fulfilling their roles and achieving goals and objectives (Manzoor 2012). The
resource-based theory focuses on human capital resources as well as employee
motivation. Owuor (2018) contends that the critical pillar of an organization's
success is human capital resources, including the encouragement of internal
auditors and tangible and intangible resources to achieve a substantial
competitive advantage.
 According to the external auditors, the findings indicated that IAF size was
a critical indicator of the quality of audit work. Additionally, an extensive internal
audit was highly beneficial for internal audit operations. For example, a larger-
sized IAF had more flexibility and opportunity for a staff rotation plan to influence
the internal audit's effectiveness significantly. This would promote a healthier
relationship, resulting in more dependable and objective audit investigations. 65 A
larger-sized internal audit attracts more resources and has a broader work scope,
talent pool, and higher organizational status than smaller departments (Zain,
Subramaniam & Stewart 2006). In this regard, the quality of internal audit work
has been noted to be better in internal audit units having a higher number of
experienced audit staff than those with a lower number.

Statement of the Problem

As organizations pursue objectives in an economic environment, the

company meets a wide range of stakeholders interested in its performance. They
can be the company's directors as shareholders and other third parties. This
complex situation has prompted us to understand more precisely "The
contribution of internal audit in achieving corporate goals." Similarly, our
experience as international students at Karlstad University has shown us many
differences in management and auditing in different countries and company
cultures. After years of education focused on finance and accounting, we thought
it was helpful to assess our knowledge while we were preparing to enter the
employment market. In this study, we want to contribute to the field of
management so that it is an important study for our successors and that it may
also allow financial and management professionals and CEOs to have a more
precise reading of the company's situation.

We believe that our modest contribution will enrich knowledge in finance

and especially internal audit. The first interest of this thesis can be an economic
one. Suppose an internal audit can contribute to corporate goals. In that case, it
can also help employees keep their place in the company and the state to
consider recovery of taxes, financial institutions take steps to recover their debt,
and the shareholders or partners should ensure the profitability of their
investment.

It could help all the company actors at every level to make the company
get better and themselves in the same way. Internal audit is a method of control
that allows different business partners such as shareholders, personnel, financial
institutions, and the state to ensure the quality and reliability of the information
provided.

Research Hypothesis

This framework is designed to investigate the following hypothesis that set

up the objective of the study:

H1: There is a significance between internal auditor independence and internal

audit effectiveness

H2: There is a significant relationship between internal auditor competence and

internal force.

H3: There is a significant relationship between having an approved internal audit

charter and internal audit effectiveness

HR: The relationship between the internal auditor and the external audit has a
significant impact on internal audit effectiveness

Scope, Delimitation, Limitation of the Study

Assumptions All the hypotheses within this dissertation are derived from
the research literature. There are no additional assumptions made in the problem
statement, research question, or theoretical base that have not been addressed in
other sections of this chapter. The relationships between internal audit, internal
controls, governance, and legitimacy are all based on contributions within the
literature.

This study seeks to contribute to the body of work by demonstrating the

theoretical and practical influence of internal audit as a legitimating institutional
mechanism through an empirical analysis using data that is not self-reported.
Limitations All research contains rules because of the nature of methods, data,
and the research process. Several regulations have been considered in the
research design. Good research should disclose any limitations, potential effects,
and mitigating controls. There are inherent problems with census data, but it is
generally accepted that it provides reasonable estimates of populations.

The setting chosen is Florida cities with populations of at least 10,000

people. The discussion of the results is limited to those cities within the sample;
however, it is possible to draw some comparisons of Florida cities to other U.S.
cities subject to the admonition that additional research is needed to confirm
these comparisons. Smaller towns may have smaller budgets with fewer
functions. They may be less likely to have a separate 21 internal audit unit.
Including smaller communities in the population would increase the sample size
but introduce possible bias.

These cities are less likely to spend enough federal funds and require an
A-133 audit. This reduces the usefulness of any similar size comparison. Data is
being obtained from the CAFR, the Census of Governments, and a survey
submitted to the sample municipalities. The reliability of the survey results is
subject to the accuracy of the answers submitted. The power of the analysis is
related to the survey response rates. These limitations are being mitigated by
designing the survey in consultation with practitioners to enhance comprehension.
An electronic format is used for the distribution and presentation of the survey.

This format ensures that respondents only receive questions relevant to

their situation, which minimizes response time and facilitates higher response
rates and respondent accuracy. Hard copy letters on Florida State University
letterhead containing instructions and mailed to respondents in advance of the
delivery of the electronic survey are designed to encourage completion. Follow-up
emails and letters are sent along with phone calls after the initial delivery of the
study to encourage participation. The use of multiple contacts through various
mediums is frequently mentioned as an effective way to mitigate the limitations
inherent in survey research (Salant & Dillman, 1994).

Significance of the Study

This dissertation contributes to organizational theory and internal audit by

explaining their linkage. Internal audit informs organizational theory by influencing
an organization's legitimacy through internal controls and governance. This
linkage is demonstrated using external audit results reported through their CAFR.
These audits are conducted by independent certified public accounting firms and
focus on objectives related to a 22 entity's system of internal controls facilitating
accurate and complete financial reporting and compliance with federal program
requirements.

This differs from previous research on internal audits that primarily relied
on self-reported data obtained through interviews and surveys of internal auditors,
chief audit executives, and their constituents (Gramling & Vandervelde, 2006).
The present study uses a more objective design to evaluate the relationship
between the presence and experience with internal audits and internal controls.
Understanding internal audit's contribution toward maintaining organizational
legitimacy is essential to public administration generally, and local governments
gave the current economically challenging environment. Local government
stakeholders have been increasingly focused on operational and reporting
problems (Wheat, 1991).

The process of identifying solutions to these types of problems would be

significantly enhanced through the presence of an internal audit function. The
prevalence of internal audits is a relatively new phenomenon tied closely to the
expansion and growth of local governments in terms of overall size and
operational scope. Relevant studies have found that since the 1970s, local
governments have been increasingly adopting internal audit as a monitoring
mechanism but that the total proportion of cities with an internal audit function
may still be less than 50% (Eckhart et al., 2001; Friedberg & Lutrin, 2001).

Identifying the specific benefits of internal audit may be helpful to

stakeholders of local governments that have not yet adopted the function but are
considering whether to heed the advice of the GFOA and others. Local
governments have struggled with difficulties maintaining revenue collections
sufficient to keep pace with the spending levels needed to provide their portfolio
of services (Thomas, 2002).

These municipalities face continued and mounting pressure from

stakeholders 23 to reduce tax burdens which may be accomplished partially
through efficiencies but more likely through reductions in spending and
elimination of services. These pressures increase the need for city managers to
build cases justifying their budget proposals. Cities are increasingly adopting
performance measurement systems that require reporting operational and
strategic results against past performance and benchmarks. The results of this
study may provide proponents of internal audit with an objective, defensible
measure of its contribution to the municipality.

Definition of Terms

Assurance service – a service where the internal auditor engages in the

systematic process of objectively obtaining and evaluating the evidence.

Audit charter - A document approved by those charged with governance

defines the internal audit activity's purpose, authority, and responsibility.

Consulting service - advisory in nature and are generally performed at the

specific request of an engagement client. The spirit and scope of the consulting
engagement are subject to agreement with the engagement client.

Internal audit - is an independent and objective activity that evaluates the

operation of the System of Internal Controls of enterprises or organizations and
provides advice to achieve the objectives at the lowest cost. At the same time, it
contributes to improving its operations and uses its controls to mitigate the risks
lurking in the company.

Dissertation - is a long piece of academic writing based on original

research. It is usually submitted as part of a Ph.D. or master's and sometimes as
part of a bachelor's degree. Your dissertation is probably the most extended piece
of writing you've ever done, and it can be intimidating to know where to start.