Made with
ConceptDraw
DIAGRAM 14

Internal Audit Process

Having ConceptDraw DIAGRAM software and Audit Flowcharts Solution is useful whether you work as a consultant for some auditing organization or the auditor.

Internal auditing itself is an objective consulting and assurance activity used to improve and so to add value to some organization's operations. With help of such activity any organization can accomplish its objectives in a way of bringing a disciplined systematic approach for evaluating and, as a result, improving the effectiveness of risk management, governance and control processes.

Internal auditing is known to be simply used for improving some organization's governance, management controls and risk management in a way of providing insight and so the recommendations, which are all based on the assessments of data and business processes as well as on the analyses. Being committed to accountability and integrity, all the internal auditing activities provide value to the senior management and governing bodies as an objective source of the independent advices.

The so called professional internal auditors are expected to be employed by organizations in order to perform all the needed the internal auditing activity. The whole scope of internal auditing within some particular organization is known to be very broad, involving such topics as: risk management, management controls and organization's governance over effectiveness as well as efficiency of the operations (such as safeguarding of the assets), compliance with laws and regulations and the reliability of management and financial reporting.

The internal auditing is also known to be involving the process of conducting the proactive fraud audits for identifying the potentially fraudulent acts. Such verifiable organizations are suspected to be involved in participating in such illegal activity as the fraud investigations. The actions of such organization are ruled by the direction of the fraud investigation professionals, that’s why it makes it more complicated to find out if there’s any fraud activity involved at all. In a way of conducting the post investigation fraud audits it becomes possible to identify and so to control the breakdowns as well as to establish any financial loss.

Although, the internal auditors are known to not be in charge for any execution of any company activities, they still tend to advise management as well as the oversight body about the best way for executing their responsibilities in a better way. As a result, the internal auditors end up having a variety of higher professional and educational backgrounds. Working for government agencies (such as local, state and federal), for the traded companies as well as for non-profit companies involved in all possible industries of business activity, the internal auditors can be very useful for guiding such institutes.

The activity of internal auditing itself is known to be very helpful at evaluating the general internal control. The term of “internal control” can be defined as a process, which can be effected by any management, directors as well as other personnel, which is expected to be providing the reasonable assurance due to the achievement of the following main objectives, which are efficiency and effectiveness of the operations, (as it was already mentioned before), reliability of management and financial reporting, compliance with regulations and laws, and safeguarding of the Assets.

Any management within any organization is known to be responsible for all the internal control, comprising all five critical components, which are: control environment, risk focused on the control activities, risk assessment, monitoring activities, and communication and information. Managers are expected to be establishing the policies, practices and processes in the mentioned five components of the management control in order to help any organization to achieve the specific objectives described above.

The internal auditors themselves perform any needed audit for evaluating if those five components of the management control operate effectively, or, in case it is not, provide all the needed recommendations for the further improvement. The Quality of the Internal Audit Report depends of a few factors, such as Objectivity, Clarity, Brevity, Accuracy and Timeliness. Keeping in mind that all the opinions and comments expressed in the issued report are both unbiased and objective, the used language is straightforward and simple, the fact that all the information which is contained in the report is accurate, the report itself is concise as well as released promptly straight after the audit is concluded (usually within one month), results in understanding in the auditors’ work done in a proper way.

Being based on the assessments of the risk within an organization, the management, the internal auditors as well as the oversight boards are known to be the only ones in charge for determining where the focus of the internal auditing efforts should be, as such focus (or prioritization) is part of the annual Audit Planning, being in most of the cases proposed by the CAE for reviewing and approving the Board of Directors. The internal auditing activity itself can be conducted as one or more than one discrete assignments and in case you are involved in such business activity you may need a professional tool for putting the mentioned assignments in order making them all look simply visually good.

Internal Audit Process *

Example 1. Internal Audit Process in ConceptDraw DIAGRAM

First of all, the Audit Flowcharts Solution offers at your disposal the Audit Flowcharts library with 35 ready-to-use vector objects which greatly facilitate creation of Audit Flowcharts and representation the steps of internal audit process.

Audit Flowcharts Library Design Elements

Example 2. Audit Flowcharts Library Design Elements

Having the right tool can always help to make things simpler, such as making an Audit Flowchart, which may be very useful for simplifying the understanding of the ongoing Audit processes. Having ConceptDraw DIAGRAM means having a chance to create any needed drawing, such as diagrams and charts, plans and flowcharts, e.g. the audit ones. Creating the mentioned drawing with help of both ConceptDraw DIAGRAM and another very useful product of CS Odessa — ConceptDraw STORE allows you to make the great as well as professionally looking charts and flowcharts.

Internal Audit Process

Example 3. Internal Audit Process

This sample was created in ConceptDraw DIAGRAM software using the Audit Flowcharts Solution for ConceptDraw DIAGRAM Solution Park and visually illustrates the internal audit process. An experienced user spent 10 minutes creating this sample.

Use the Audit Flowcharts Solution for ConceptDraw DIAGRAM software to quick and easy create your own Audit Flowcharts, Audit Process and Internal Audit Process Flowcharts.




TEN RELATED HOW TO's:

Competitor Analysis →

Competitor analysis is a first and obligatory step in elaboration the proper corporate marketing strategy and creating sustainable competitive advantage. Use powerful opportunities of numerous solutions from ConceptDraw Solution Park for designing illustrative diagrams, charts, matrices which are necessary for effective competitor analysis.Competitor Analysis
Picture: Competitor Analysis
Related Solution:

Geo Map — Europe — Sweden →

The vector stencils library Sweden contains contours for ConceptDraw DIAGRAM diagramming and vector drawing software. This library is contained in the Continent Maps solution from Maps area of ConceptDraw Solution Park.Geo Map — Europe — Sweden *
Picture: Geo Map — Europe — Sweden
Related Solution:

Risk Diagram (Process Decision Program Chart) →

Process Decision Program Chart (PDPC) is a commonly used technique that was designed in order to help prepare the contingency plans. The emphasis of the PDPC is identifying the consequential impact of failure on activity plans as well as creating the appropriate contingency plans in terms of limiting the risks. Planning to make the tree diagrams and/or the process diagrams can be extended by a couple of levels when the PDPC can be applied to the bottom level tasks on those diagrams.Risk Diagram (Process Decision Program Chart) *
Picture: Risk Diagram (Process Decision Program Chart)
Related Solution:

Sales Process Flowchart Symbols →

The most easier way of creating the visually engaging and informative Sales Process Flowchart is to create the new ConceptDraw document and to use the predesigned vector symbols offered in 6 libraries of the Sales Flowchart Solution. There are more than six types of sales process flow diagrams, ConceptDraw DIAGRAM software is flowchart maker which include six collections of extended flowchart symbols for effective diagramming. There are main collections of color coded flowchart symbols: Sales Department, Sales Steps, Sales Workflow, Sales Symbols and special set of Sales Arrows and Sales Flowchart.Sales Process Flowchart Symbols *
Picture: Sales Process Flowchart Symbols
Related Solution:

Organizational Structure →

Bureaucratic companies usually are characterized by a strict hierarchy and clearly defined responsibilities. However, sometimes organizational structure of a company reminds of somewhat tangled. To clarify it, you can create an orgchart that will represent the company as a tree with its' departments as branches. This organization diagram represents a tree-like organizational structure. This is a typical example of a top-level branches of the hierarchical organizational structure. This part of the tree shows heads of branches who are subordinated completely to the president. The information and solutions are distributed though a tree structure down to the company's departments. Each of the sub-division has its own structure that is reflected in the corresponding organizational chart. This orgchart diagram was created using the vector graphic library supplied with ConceptDraw Organizational Charts solution.Organizational Structure *
Picture: Organizational Structure
Related Solution:

Gant Chart in Project Management →

Gant Chart is a graphical representation of tasks as segments on a time scale. It helps plan and monitor project development or resource allocation. The horizontal axis is a time scale, expressed either in absolute or relative time.Gant Chart in Project Management *
Picture: Gant Chart in Project Management
Related Solution:

Types of Flowchart - Overview →

A flowchart is a powerful tool for examining processes. It helps improving processes a lot, as it becomes much easier to communicate between involved people, to identify potential problems and to optimize workflow. There are flowcharts of different shapes, sizes and types of flowchart vary from quite basic process flowcharts to complex program flowcharts. Nevertheless, all these diagrams use the same set of special symbols like arrows to connect blocks, parallelogram to show data receiving or rectangles for showing process steps. Basic flowcharts are used to represent a simple process algorithm. A basic flowchart notation consists of rectangles (business processes), arrows (the flow of information, documents, etc.). The same notation is used in items such as the "decision", which allow you to do the branching. To indicate the start of the entire business process and its termination can be used the "Terminator" element. The advantages of Basic Flowchart are simplicity and clarity. With it you can quickly describe the business process steps. Creating of Basic Flowchart does not require any special knowledge, as easily understand by employees with different levels of education and IQ.Types of Flowchart - Overview *
Picture: Types of Flowchart - Overview
Related Solution:

ER Diagram for Cloud Computing →

The entity–relationship (ER) model is a data model that lets graphically represent the information system and depict the relationships between people, objects, concepts, places, and events within a given system. It is also convenient to use the ER Diagram for Cloud computing representation and description the Cloud computing architecture, design them with pleasure using the extensive tools of the Cloud Computing Diagrams solution from the Computers and Network area of ConceptDraw Solution Park.ER Diagram for Cloud Computing *
Picture: ER Diagram for Cloud Computing
Related Solution:

Audit Process →

The audit process is a definite set of steps used in a financial, operational or compliance audit. This set of steps depends of the audit services company. The auditing process usually includes three main steps: planning, fieldwork and reporting. The Audit Flowcharts solution from the Finance and Accounting area for ConceptDraw Solution Park extends ConceptDraw DIAGRAM vector graphics and diagramming software with the ability of easy drawing the Audit Process Flowcharts.Audit Process *
Picture: Audit Process
Related Solution:

Business Diagram Software →

Any business process consists from a number of tasks carrying out the certain business goal. It is useful to diagram business processes to ensure that they are as foolproof, logical and sequential as possible. This business process diagram describes a typical booking process flow by the example of a cab booking process. It can be used as a roadmap for any booking system implementation. Diagramming a business process allows you to look at the entire project and take into account all types of possible scenarios. Business process diagram helps you investigate and clarify the process thoroughly so that you can find out how it can be improved. Business process diagram supports team communications by ensuring that each process element is clear and everyone in the team is on the same page. Sometimes your company brings you less profit than you expect it to be, and it’s difficult to reveal the causes. Maybe it’s time to learn new technologies, because business diagram are easily developed by means of special software, so you won’t make any extra effort. In return, you will increase your productivity and get more done in a less time.Business Diagram Software *
Picture: Business Diagram Software
Related Solutions:
ConceptDraw
DIAGRAM 14