The following categories of function may be carried out by an internal audit department:
- Advisory– meaning that the internal auditor may recommend improvements and changes in the system in operation and in the setting up of new systems
- Executive-the internal audit department may actually deise and install changes and improvements to existing systems and set up new systems
- Reporting-the internal audit department prepares routine report on the company’s activities either on a comprehensive, or on an exception basis
- Routine testing-the department routinely monitors the performance of the company’s system, eg. by examining and testing controls such as those over buying procedure and by cash counts or stock counts
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