Name : Arief Budi Nugroho

NIM : 12030120190075
Class : X-IUP

Meet 2 Individual Assignment

In order to understanding about some certified profession, there’s always such a things named CBOK or
common body of knowledge. CBOK is

 CBOK is the minimum level of knowledge that need to be have by some people for the
requirement of certain discipline of job to give the perform. Mostly CBOK will be the
requirements that been provided by the profession organization that will be developed their own
CBOKs. The next level of development sometimes called BOK which the route for improving or
upgrading for certain professional.
 CBOK can simply stand by itself because for internal auditor it’s already covers variety of
internal audit that to be need to be understand. Or maybe the base of the knowledge that been
need by workers.

How about the internal audit? What things that been need to know by the auditor?

 Committee of Sponsoring Organizations (COSO) internal control framework

 Planning and performing internal audits
 IIA internal audit standards
 It doesn’t mean that those “only” need to be understand by the internal audit. The other material
will help them to understand more and gaining knowledge to support and upgrade their level in
the profession worlds

Then how about the Internal Audit CBOK?

 CBOK Requirements: Importance of Internal Controls

 CBOK Requirements: Planning and Performing Internal Audits
o Auditors is required to understand about analyzing the evidence (pull, review,
observation) and make the audit decision from the sample.
 CBOK Requirements: Organizing and Managing Internal Audit Activities
o To make the effective in processing the valid result of audit, there’s some procedure that
need to be follow by the auditor. That’s why the auditor need to be able to manage it
activities well.
 CBOK Requirements: Impact of Information Technology on Internal Audit.
o The adaptation of a tool can help the auditor is needed in order to follow the
modernization and making it more effective to gain the close to perfect audit decision.
 CBOK Requirements: Internal Audit and Enterprise Governance
 CBOK Requirements: Internal Audit Professional Certifications
 CBOK Requirements: Internal Auditing Professional Convergence

In supporting the CBOK, the auditor needs some other foundations such as books, updated rules, and
so on.
 After the CBOK which the common knowledge, we must understand about the audit role. According
to IIA definition internal auditing is an independent, objective assurance and consulting activity
which designed to add value and improve an organization’s operation. So, in order to gain the goal
and do all the procedure it will be need the elements that need to be followed.

Example: 2006 code of practice for internal audit in local government in the United Kingdom.

 Introduction
 Standard 1: Scope of internal audit
 Standard 2: Independence
 Standard 3: Ethics for Internal Auditors
 Standard 4: Audit Committees
 Standard 5: Relationships
 Standard 6: Staffing, Training and Continuing Professional Development
 Standard 7: Audit Strategy and Planning
 Standard 8: Undertaking Audit Work
 Standard 9: Due Professional Care
 Standard 10: Reporting
 Standard 11: Quality

In providing the internal audit, the activity must evaluate risk exposures that relating to the organizations
governance, operations, and information systems regarding the:

 Reliability and integrity of financial and operational information

 Effectiveness and efficiency of operations
 Safeguarding of assets
 Compliance with laws, regulations, and contracts

The wide scope, time frames is also helped the auditors to understand what they actually evaluate it and
providing the solid audit decision.

Behind of the great internal audit activity, the worker or the auditor needs to always perform the
professionalism as the integrity for doing the job. In order to developing the professional audit services,
we must define the standard to providing more better results. The understanding of the standards needs to
be mandatory, concern about the local factors, implied the standardization, the language, and the political
concern.

The standards can also be implied to the smaller organizations which some concern such as lower status,
type of work, and level of expertise.

To having the good team governance of the effective order we have to concern few things. Definition of
Internal Audit in this section is an independent and objective appraisal service within an organization.

The code of ethics for internal auditors in central government requires the observance in 4 main
principles:
 1. Integrity
2. Objectivity
3. Competency
4. Confidentiality

From those principles there are areas that covered in the organizational and operational standards follows:

 In organization standards we must concern for scope of internal audit, the independence
(principle, organizational, and some standards), providing of audit committees, understanding of
the relationships within the management, other auditors, and other review bodies, and organize
staffing, training, and development.
 In operational standards for perform the audit efficient and effective is concerning about the audit
strategy, management of audit assignments, due professional care, form of reporting and quality
assurance.

Consultation services is being defined by the IIA as advisory activities and related client services, the
nature and scope of which is agreed with the client, are intended to add value and improve the
organization's governance, risk management and control processes without the internal auditors assuming
management responsibility. Examples include advice, advice, facilitation, and training.

Consulting standard 1130.C1 states that internal auditors may provide consulting services relating to
operations for which they were previously responsible.

Standard 1130.C2 goes on to say If an internal auditor has the potential to impair independence or
objectivity in relation to proposed consulting services, disclosure must be made to the engagement client
prior to accepting the engagement.

Independence is an important feature of consulting. A consultant must be in a position to make an

impartial assessment of any situation, tell the truth, and recommend honestly and objectively what the
client organization needs to do without having second thoughts about how this might affect the
consultant's own interests. The separateness of these consultants is multifaceted and can be a tricky issue
in certain cases.

Milan Kubr says that the two main aspects of consulting work are:

 The technical dimension, which concerns the nature of management or business processes
and problems faced by clients and the way in which these problems can be analyzed and
resolved.
 The human dimension, namely interpersonal relations within the client's organization,
people's feelings towards the problems faced and their interest in improving the current
situation, as well as interpersonal relations between the consultant and the client.

These two dimensions require different types of tools, techniques, and approaches. Auditors may be
experienced in process-based problem solving, but may lack confidence when dealing with the human
dimension.