Internal Auditor

Internal Auditor. Case Study : Azania Bank Ltd. Nur Muhammad Al- Nazirul Mubin bin Haji Arfan Nurul Afiqah binti Mohamed Azman Zaeemah binti Haji Zaini BBACC 2001 D.

Contents of this video :. Introduction of Internal Auditor.

01. Introduction of Internal Auditor. - What is an Internal Auditor?.

What is an Internal Auditor?. Introduction of Internal Auditor.

1) It is a task where it is engaged with independent, objective and consulting activities that provide value and improvements of operations to the organisation.

2) It helps to achieve their objectives by bringing them a systemic approach which will make them be able to evaluate and improve effectiveness of risk management, control and governance processes..

01. A personnel assessing the performance of an organization.

02. Usefulness of Internal Auditor. Head with gears.

Usefulness of internal auditor. Reviewing each transaction and pertinent document that the company made during audited period.

03. Work Assurance by Internal Auditor. Head with gears.

Organisation’s risk & control environment can be comforted & assured by internal audit.

In Azania Bank Ltd, 76% of the respondents agreed that internal controls are strong and prioritized.

04. Importance of hiring Internal Auditor. Head with gears.

Acts as an assurance functions. Provides guidance.

Responsible to ensure less risk. 01. In Azania Bank, they hired an individual that are independent and able to take responsibilities in order for their company to reduce risk. Less risk equals to employees being able to do their duties effectively which also equals to organisations achieving their overall goals..

02. Provides guidance. Internal auditor assists risk management to different departments in Azania Bank. The internal audit unit of Azania Bank guides the management with advice, solutions and how to deal with risk management. The management mostly relies on the internal audit unit when issues/risks arise..

03. Acts as an assurance functions. In Azania Bank, the internal audit unit provides assurance on the efficiency of the governance process and internal control process. This was done to ensure that everything is under control..

04. Gives support in educational functions. In Azania Bank, they give support by conveying suitable risk and control skills. This is to ensure the management is ready for any challenge that will occur in the future. The internal audit unit educates the management on risk management so they have an exposure on what risk is and how to overcome it..

05. Gives technical support. The internal audit conducts technical audit to Azania Bank as it gives technical support to the organisation. This was done by giving technical advice and technical audits especially on the assets owned by the organization..

05. Limitations of Internal Auditor. Head with gears.

Confidentiality. Incomplete data obtained by auditors.

Lack of cooperation. 01. Clients are not giving enough information to the internal auditor regarding the company’s statement of financial position Researchers of Azania Bank Ltd find it difficult to gain data because employees are not willing to solve problems and provide the relevant information..

02. Incomplete data obtained by auditors. Auditors feel that their work has been underestimated simply by having a small amount of information given. Researchers of Azania Bank Ltd faced incomplete returns of questionnaires, in terms of number, reliability, and accuracy of the information..

03. Confidentiality. Clients do not tell specific or in depth information to auditors In Azania Bank Ltd, information may be confidential where staff members were bound by regulations not to supply such data..

06. Recommendation & Conclusion. Head with gears.

Azania Bank Ltd’s management should cooperate with the internal auditors Management should provide accurate, complete and relevant information that compliance with their laws and regulations to internal auditors However, internal auditors should maintain high-level risk and focus on the low risk that can be a risk to the organization Employees and auditors’ confidentiality should not expose and disclose the information given.

It is important for large organizations to hire internal auditors However, it depends on their budget on whether they are able to hire or not In order to avoid, share, minimize, mitigate or accept risk, management can get help from internal auditors Owners receive for better processes, performance, controls and risk management and boost revenues. With this nternal auditors helps organization to achieve its goals and objectives.

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