Internal Audit Policy and Procedure Manual
1. Internal audit bond
The mission of the bond is to come up with specified objectives of how to control financial and accounting system of Stezg University. Approval of risks associated with the companys mission statement will be done by board of directors, counsel of university, chairman and his vice. Stezg University mission will be accomplishing in respect to the process set down, (Hightower, 2008).
The internal audit department will be expected to carry our activities of auditing to ensure that all have been taken care. Operations will be expected to be undertaken in a manner that no single activities of the University have been affected whatsoever, (Moeller, 2009).
Audit members are responsible of assigning duties to other employees and they are required to work under the vice of the university. Responsibilities of each and every employee will be well defined and signed by the audit committee, (Bragg, 2007).
Objectivity and confidentiality
The main work of the audit committee is to work accordingly so as to achieve the mission of the University. During the audit process, any kind of information should be treated with great care and confidentiality unless there is need to disclose that information to the general public. At any given time, internal audit committee is expected to work within laid procedures and questions may arise incase of contract violation. The chairman, vice and general counsel are the only admitted groups which can access audit reports only under the approval of audit committee, (Hightower, 2008).
Code of Ethics
In respect to the set codes by the University, internal audit staff is expected to work under them with others which the committee will develop. This is to provide a conducive environment for all workers. Any person working against laid down codes will be expected to face disciplinary action or step aside without any notice whatsoever, (Moeller, 2009).
Duties of internal audit
The main work of the internal audit is to ensure its working towards University mission accomplishment. There are five other duties which internal audit committee is expected to attend in line with the main one. Those duties include; auditing operational activities of the organization, audits of compliance, financial audits, and auditing issues related to technology and lastly investigative audits activities, (Bragg, 2007).
2. Audit planning
Developing the audit plan is the initial step for audit planning. it is the work of the top person in internal audit committee to develop that audit plan which shows which areas will be covered during the entire organization working year. An audit plan is certain document which gives the outline of what is expected to be dealt with during the year.
When Executive Director is through with audit plan development, the document is approved and signed by vice president. During this process of developing audit plan, risks are identified and taken care on how they will be dealt with incase they arise during audit process, (Hightower, 2008).
3. Audit process
Actually all audit processes are similar regardless of the selected project. The actual stages of auditing process are nine which seems similar to all projects even though projects are not similar. In the process risks are minimized and the internal audit committee tries all means of ensuring activities are running accordingly. In the process of audit, time is wasted thus it is the work of the committee to ensure that activities are run effectively and efficiently. Any type of disruption which can prevent smooth running of organization activities is identified and catered for, (Moeller, 2009).
4. Audit procedures
Most people confuse audit process and audit procedures. Procedure is the manifest material which is realized during the audit process. It is the duty of internal audit committee to act in a responsible manner so as to come up with a valid and relevant observation. Audit committee has mandate of acting in a professional way such that incase of anything the committee will be responsible and liable of any mistake that may arise. Any information found should be treated accordingly in order to come up with a valid audit report, (Moeller, 2009).
5. Work paper procedures
What is a work paper procedure? This is nothing else but paper work which documents the whole idea of the audit process and procedures which are to be followed when accomplishing the task required. Work papers contain the initial plan of the whole idea, what will constitute to the audit process, how the audit program will be tested and finally findings that were realized in the cause of program operation. There are different types of work papers which are used to ensure that audit plan have turned successful, (Bragg, 2007).
6. Administrative procedures
This is the last and important step in any given audit process. Internal and external auditors work together in line with rules stipulated by international auditing association. Mutual aid of two audit bodies should yield fruitful results which should help the organization in meeting its objectives, (Hightower, 2008). Its the duty of Human Resource Department to ensure that job imagery is followed.
Bragg, S.M. (2007). Accounting policies and procedures manual: a blueprint for running an effective and efficient department: John Wiley and Sons, 2007
Hightower, R. (2008). Internal controls policies and procedures: John Wiley and Sons
Moeller, R.R. (2009). Brink’s Modern Internal Auditing: A Common Body of Knowledge: John Wiley and Sons
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