Enterprise Risk Management - Implementing An ERM Program - Internal Audit Role

Internal Audit Role

Accountancy
Key concepts
  • Accountant
  • Accounting period
  • Accrual
  • Bookkeeping
  • Cash and accrual basis
  • Cash flow forecasting
  • Chart of accounts
  • Convergence
  • Journal
  • Special journals
  • Constant item purchasing power accounting
  • Cost of goods sold
  • Credit terms
  • Debits and credits
  • Double-entry system
  • Mark-to-market accounting
  • FIFO and LIFO
  • GAAP / IFRS
  • Management Accounting Principles
  • General ledger
  • Goodwill
  • Historical cost
  • Matching principle
  • Revenue recognition
  • Trial balance
Fields of accounting
Financial statements

Balance sheet

  • Cash flow statement
  • Income statement
  • Statement of retained earnings
  • Notes
  • Management discussion and analysis
  • XBRL
Auditing
  • Auditor's report
  • Control self-assessment
  • Financial audit
  • GAAS / ISA
  • Internal audit
  • Sarbanes–Oxley Act
Accounting qualifications
  • CIA
  • CA
  • CPA
  • CCA
  • CGA
  • CMA
  • CAT
  • CIIA
  • CTP
  • CFE
  • CICA
  • ACCA
  • CIMA
  • CGMA

In addition to information technology audit, internal auditors play an important role in evaluating the risk management processes of an organization and advocating their continued improvement. However, to preserve its organizational independence and objective judgment, Internal Audit professional standards indicate the function should not take any direct responsibility for making risk management decisions for the enterprise or managing the risk management function.

Internal auditors typically perform an annual risk assessment of the enterprise, to develop a plan of audit engagements for the upcoming year. This plan is updated at various frequencies in practice. This typically involves review of the various risk assessments performed by the enterprise (e.g., strategic plans, competitive benchmarking, and SOX top-down risk assessment), consideration of prior audits, and interviews with a variety of senior management. It is designed for identifying audit projects, not to identify, prioritize, and manage risks directly for the enterprise.

Read more about this topic:  Enterprise Risk Management, Implementing An ERM Program

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