In these latter two areas, internal auditors typically are part of the risk assessment team in an advisory role. Specific topics considered in IA strategic planning include: Scope and emphasis: An IA function may be involved in addressing risks related to financial reporting, operations, legal and regulatory compliance, and the company strategy.
Reporting of critical findings[ edit ] The Chief Audit Executive CAE typically reports the most critical issues to the Audit Committee quarterly, along with management's progress towards resolving them.
The Audit Plan is typically proposed by the CAE sometimes with several options or alternatives for the review and approval of the Audit Committee or the Board of Directors.
Describing the key risks facing the business activities within the scope of the Audit.
A few years back, people undergoing an audit were most often referred to as "auditees. Report readers need to know they can rely on our facts, and overuse of weasel words can make solid recommendations sound a little too much like hunches.
Clarity - The language used should be simple and straightforward. Compliance with laws and regulations.
While some of the audit technique underlying internal auditing is derived from management consulting and public accounting professions, the theory of internal auditing was conceived primarily by Lawrence Sawyeroften referred to as "the father of modern internal auditing";  and the current philosophy, theory and practice of modern internal auditing as defined by the International Professional Practices Framework IPPF of the Institute of Internal Auditors owes much to Sawyer's vision.
Under the IIA standards, a critical component of the audit process is the preparation of a balanced report that provides executives and the board with the opportunity to evaluate and weigh the issues being reported in the proper context and perspective.
Internal Auditing activity is generally conducted as one or more discrete assignments. For particularly complex issues, the responsible manager may participate in the discussion. Strategy[ edit ] Internal audit functions may also develop functional strategies described in multi-year strategic plans.