Internal Auditing

28 September 2011 - 9:03pm
Wise old head - sometimes

The only University that appears to provide a course in this area is Glasgow Caledonian Universitya nd this is a part time two year course. I stand to be corrected on that point. The business schools also appear to be lacking in any appraoch to this area.
As I understand the Institute of Internal Auditors has three stages of qulaification and they cover the following topics:
Corporate Governance and Risk Management
Internal Auditing – Tools and Techniques
Effective Delivery of an Audit
Communication and Client-Auditor Relations
Organisation and Management - concepts and practices
Accounting and Financial Systems
Internal Auditing
Business Information Systems Auditing
Corporate Governance and Risk Management
Effective Delivery of an Audit
Communications and Client-Auditor Relations

Strategic Management
Financial Management
Risk Assurance and Audit Management
Advanced Internal Auditing Case Study
Advanced Business Communication.

From the above ot is hard to see how any form of generic degree course can establish a student on a path for this qualification, yet with Corporate Governance and SOX high on agendas today the internal audit comliance team are a vital part of a business.

It would be appreciated if people or indeed Internal Auditors could give their views in training and how they see this qualification as being vital. Thanks

Latest comments

  • 4 October 2011 - 6:50pm
    • David53

    I thought it might be good to look at why Internal Auditing is so important and so interesting following Stella's comments.
    Why is always said to be the internal auditor's favourite word. Shakespeare analyzed it n the "Comedy of Errors" with that well known statement "every why has a wherefore."(1)
    The why brings out the cause, the reason. The what, the where, the who, and the how make us more knowledgeable, but the why makes us wiser. The worker knows how, the boss knows why.
    So let's look at the 4 whys's that are realted to Internal Auditing.

    1. Why is internal auditing considered a distinctive discipline? It is distinctive as it protects the worm=kings and the management of a company on a daily basis.

    2. Why can we consider internal auditing a profession? The approach is professional, it has a set of standards set by a licensed body and demands standards from its members.

    3. Why does management need internal auditing? In order to ensure that the business operates within corporate governance, that the companies policies are adhered to and to ensure such areas as SOX are followed

    4. Why become an internal auditor? You become an internal auditor because you have an enquiring mind and you like to see that there is justice and fairness.

    "Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization."

    To achieve this you need as Stella says 'real life experience' and this is best gained by working and studying on the job.


  • 4 October 2011 - 6:49pm
    • David53

    I thought it might be good to look at why Internal Auditing is so important and so interesting following Stella's comments.
    Why is always said to be the internal auditor's favourite word. Shakespeare analyzed it n the "Comedy of Errors" with that well known statement "every why has a wherefore."(1)
    The why brings out the cause, the reason. The what, the where, the who, and the how make us more knowledgeable, but the why makes us wiser. The worker knows how, the boss knows why.
    So let's look at the 4 whys's that are realted to Internal Auditing.

    1. Why is internal auditing considered a distinctive discipline? It is distinctive as it protects the worm=kings and the management of a company on a daily basis.

    2. Why can we consider internal auditing a profession? The approach is professional, it has a set of standards set by a licensed body and demands standards from its members.

    3. Why does management need internal auditing? In order to ensure that the business operates within corporate governance, that the companies policies are adhered to and to ensure such areas as SOX are followed

    4. Why become an internal auditor? You become an internal auditor because you have an enquiring mind and you like to see that there is justice and fairness.

    "Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization."

    To achieve this you need as Stella says 'real life experience' and this is best gained by working and studying on the job.


  • 4 October 2011 - 6:48pm
    • David53

    I thought it might be good to look at why Internal Auditing is so important and so interesting following Stella's comments.
    Why is always said to be the internal auditor's favourite word. Shakespeare analyzed it n the "Comedy of Errors" with that well known statement "every why has a wherefore."(1)
    The why brings out the cause, the reason. The what, the where, the who, and the how make us more knowledgeable, but the why makes us wiser. The worker knows how, the boss knows why.
    So let's look at the 4 whys's that are realted to Internal Auditing.

    1. Why is internal auditing considered a distinctive discipline? It is distinctive as it protects the worm=kings and the management of a company on a daily basis.

    2. Why can we consider internal auditing a profession? The approach is professional, it has a set of standards set by a licensed body and demands standards from its members.

    3. Why does management need internal auditing? In order to ensure that the business operates within corporate governance, that the companies policies are adhered to and to ensure such areas as SOX are followed

    4. Why become an internal auditor? You become an internal auditor because you have an enquiring mind and you like to see that there is justice and fairness.

    "Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization."

    To achieve this you need as Stella says 'real life experience' and this is best gained by working and studying on the job.


  • 3 October 2011 - 10:39pm
    • StellaM

    I also agree with these statements. Internal auditing in particular requires real life experience and whilst academic study is obviously valuable students will need to be aware of the need to gain experience if they are to have a long term career in this area. I would suggest therefore that internal auditing may be better off being approached as a course of study for those already qualified and working in an organisation. Internal auditing is becoming an increasingly important issue for organisations but this is linked to real life problems such as Enron and this is not always something that can be dealt with completely in the classroom.
    This is an ever changing area and I think it is going to be one to watch from both an academic and a practical way. For many employers it may be something that they want to deal with in-house or through the use of CPD rather than as an academic study in itself.


  • 1 October 2011 - 4:23pm
    • Wise old head - sometimes

    Nia

    I think you have hit the nail on the head. The secret is study and work combined. The academic process is all very well and good, and does instil some good thinking in people the truth is that until you face real live situations there is no knowing how your thought process will assimilate the facts, let alone how you can apply yourself to these situations.
    The truth is that, as many auditors will tell you, the 'sixth sense' that you need to be an auditor cannot be taught to you. I well recall when I was training I could just not get something to balance, so I fudged it.
    I was well caught by my principal who knew what I had done. Asked how he said 'he smelt it'. I have since discovered how right he is. The sixth sense is the auditors best tool.
    As you say auditing is growing on a yearly basis in terms of its application and the need for it that was borne out by Enron etc. has not gone away.
    I know that in some cases, charities for example, an examination is all that is required, but I suspect time will tell us that is not enough.
    It si a grwoing field and one well worth entering into including Internal auditing.


  • 29 September 2011 - 8:00am
    • NiaG

    I think that auditing as a subject area is going to increase dramatically in the coming years particularly as the government puts the squeeze on companies to ensure that everything is above board. Based on this any auditing knowledge is likely to go down well. I have looked into the possibility of pursuing a career in internal auditing and have done several work experiences to investigate this area. Although obviously this is a small section of the industry on the whole those I spoke to felt that the academic study was only partially useful and they only just started to learn properly ‘on the job’. That said the qualification was seen as an essential way of getting into the industry.
    From this I have read between the lines I conclude that the qualification is a must have and if this can be done alongside work experience the whole thing will be the point where you really gain your knowledge. Mind you I guess that is true of many areas of business, finance and management.
    N