Page 107 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes 2. Purpose: The main purpose of internal check is the prevention of errors and frauds. The
main purpose of internal audit to find errors and frauds.
3. Personnel: As internal check is an inbuilt process of internal control no separate personnel
are required for the job. Whereas for internal audit separate staffs are required to conduct
the job.

4. Timing: Internal check is a continuous process. It begins the moment a transaction start
and finishes after all aspects are recorded.
Internal Audit is a post mortem appraisal system and starts after the completion of recording of
transactions.

Self Assessment

State whether the following statements are True or False:
16. Internal check is an important process of internal control system.
17. Prevention of errors and frauds is an important objective of internal check.

Task Devise a suitable scheme of internal check as regards cash receipts in a big
departmental store.

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Case Study The Ministry of Finance Hosts Workshop on
Internal Audit and the Risk Assessment Process

United Arab Emirates: Thursday, March 11, 2010 at 15:19
The joint internal audit section at MoF held a Workshop at the ministry’s headquarters in
Abu Dhabi on the inception and the development of the Internal Audit and Risk concepts
and the importance of the risk assessment process. This builds on the need to continue
developing financial control systems for federal bodies at best standards and practices.
The workshop addressed the concept of internal audit - an independent, impartial and
affirmative advisory activity that aims at development and adds assists in achieving
corporate goals. It has a clear methodology for the development and evaluation of the risk
management and control systems, as well as the mechanisms of internal control and
governance.
In addition it serves the internal audit system and corporate governance through the
development and evaluation of follow-up goals and strategies. It applies risk assessment
through following-up and developing the risk management system efficiency. It is linked
with the activity, computer systems and control procedures. The third service addresses
the internal control procedures, evaluating and developing the level of reliability of
various activity data and measures the effectiveness of their performance and asset
preserving procedures. Introducing the workshop, HE Ahmed Al Hammadi, Executive
Director of the Joint Internal Audit, Ministry of Finance, said:
“We continue to raise awareness about the importance of internal audit for federal
government agencies, so that the internal audit is an integral part of any functional system.
Contd....

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