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This depends on the size and structure of the entity and the responsibility assigned to it by management. Ordinarily these would include:
• Review of accounting internal control systems. The management is responsible for
establishing internal control system. The system requires proper attention and continuous
review, a function usually assigned to internal audit. Internal Audit function designs a plan on
areas and control procedures that will be reviewed during the financial year.
• Carrying out examination of financial and operational information. This may include detailed
testing of transactions and operation procedures.
• Review of the economic efficiency and effectiveness of operations including non financial
controls of the entity.
• Review of company’s compliance with external laws and regulation. The internal audit
functions checks whether procedure are in place to ensure that all relevant laws and
regulations are adhered to.
• Review of entity’s compliance with management policies and other internal requirements.
• Carrying out independent investigations into company affairs as required by management
e.g. investigation areas of suspected fraud or misuse of company’s resources.
Wilfykil answered the question on April 11, 2019 at 06:38
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