Audit Auditing is the on-site verification activity, such as inspection or examination, of a process or quality systemto ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step. Find more information in the video, The How and Why of Auditing. As defined in ISO
This site explains what I did to find out about the requirements, integrated the requirements into Quality Management System QMS and implement the internal controls auditing function. Since this is a recent requirement for Public Corporations, this many be of interest to those in similar circumstances.
It should also be noted that an ISO quality system has a lot of similarities to other standards such as ISO and AS and the integration into those systems should be the same. Things were going fine. I had just passed my initial ISO Since I had set up an anonymous "whistle blower" form that went the Board of Director's Audit Committee, I thought this might be a quick and easy thing or would it?
While I haven't had to work as an accountant, I have done a number of product costing activities. Besides, in a smaller company, no one wants to hire an extra person to work a week or two every quarter. The information below provided by an external accounting auditors to our Controller explained what needed to be done.
The following items below are relevant to understanding the current status: The Sarbanes-Oxley Act, a government law, requires companies to perform internal controls audits. While the government dictates that companies must perform these internal controls audits and that CEO's and CFO's must attest to their accountant's findings, the standard by which the company's are to audit their books has not yet been approved.
Many large companies are integrating the Accounting and Financial procedures into their quality systems and auditing to the COSO framework.
The accounting procedures and processes need to be documented like the processes are for the ISO Flow charts or process maps are recommended. The COSO framework states that the company must have objectives and know how they are performing against them as well as what they would do if they didn't meet the requirements, again, similar to the ISO As with any type of auditing, there must also be auditor independence.
It's a little hard to find an internal accounting auditor outside of the accounting department. Some external accounting auditor firm's preparation materials had a recommendation for those responsible for writing the procedures get the help of the Quality Assurance department since they were already familiar with "The Process Model" audit and how to write and flowchart procedures.
The current COSO framework is not approved as the standard by the SEC, however, seems to be the framework most companies are using to comply with the legal requirements and the is currently available, by industry, at http: Section of Sarbanes-Oxley requires public companies to verify that their financial-reporting systems have the proper controls, such as ensuring that revenue is recognized correctly.
Senior executives must attest that these controls are in place for fiscal-reporting periods that conclude after Nov. Back to Index Training Since the SEC had not approved the audit framework, the companies that provide this type of training didn't know which framework to provide any guidance, much less train for.
Training will be something I will have to do at a later date, as does our company's Controller. Sometimes, you just have to figure it out on your own and hope it's close enough. To that end, I found as much relevant information, both from the external auditor and places on the Internet. The Institute of Internal Auditors has a great deal of information on the topic and is planning training.
Training is key to any implementation, however, this is a system and the big picture is not always readily apparent to those responsible for the implementation. While asked to help with the implementation, there were no invitations to any meetings with the external auditor since it was thought that to much time would be taken up asking questions and taking up some very expensive external auditor's time, not to mention that my time is also considered expensive.
Only after the external consultants wanted to know about the IT systems was I involved. This means that questions such as how extensive does the training for employees have to be go unanswered.This book is an introduction to internal auditing.
The content is relatively straightforward and generic, providing reasons for internal auditing, and a four step process for performing this function. Help site for those trying to integrate the Sarbanes-Oxley Act Internal Controls Auditing of accounting / financial procedures and processes into an ISO Quality Management System.
Internal audit can help organizations review and test cybersecurity, business-continuity, and disaster-recovery plans. The potential for reputational harm that poorly managed business disruptions create is significant, and it is far better to find faults through mock exercises than in a real-life scenario.
The phrase “internal control structure and procedures” features prominently in Section of Sarbanes-Oxley.
But what exactly is a control structure composed of? The Internal Auditing to ISO/IEC training course prepares the internal auditor to clearly understand technical issues relating to an audit. Internal audItInG and Fraud 2 / The Institute of Internal Auditors • Ongoing reviews — an internal audit activity that considers fraud risk in every audit and performs appropriate procedures based on fraud risk.