205020 Audit checklist WEB

Audit Committee InstituteEvaluation of internal auditorsThe current spate of restated financial statements, missed earnings projections,and high profile corporate failures has sent a brisk current of change sweepingthrough UK boardrooms aimed at strengthening the independence andeffectiveness of audit committees. In response, audit committee members have been more focused than ever on enhancing both theeffectiveness and efficiency of their audit committees, including improving the interaction of theaudit committee with management, internal audit, and the external auditors. Indeed, theimportance of the relationship between audit committees and internal auditors is beingincreasingly recognised.While the statutory auditor is responsible for auditing the company’s financial statements andforming an opinion as to their truth and fairness; the internal auditor is responsible for providingobjective assurance as to the adequacy and effectiveness of a company’s risk management andcontrol framework. Each has its own unique responsibilities, but the audit committee shoulddetermine that they complement each other, that their audit effort is coordinated, and that theycommunicate effectively.The audit committee should evaluate internal audit based on its own experiences and askmanagement and external audit to provide their own assessments. Where the organisation hassubsidiaries or distinct business units, it may be appropriate to request their management ...