Internal Audit

[ina]

Dear Members,

With reference to Code of Corporate Governance (Issued by SECP) I would like to mention that date of compliance of the 'code' starts from December,31,2003.

I wish to know whether companies have complied to the requirements for Internal Audit function yet or not.

Please write about the company you work for (or the company you know well) is in progess of establishing Internal Audit function to comply with the code briefly indicating how they are progressing.

All information about company (ie Name, Location etc.) need not to be disclosed so anonymous information is sufficient.

Regards,

[shahid amin]

First I explain the Audit........What is audit?
Ans
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis. Due to practical constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits. In the case of financial audits, a set of financial statements are said to be true and fair when they are free of material misstatements - a concept influenced by both quantitative and qualitative factors.

<font color="red"><b>Internal Audit</b></font id="red">

Internal auditing is a profession and activity involved in helping organizations achieve their stated objectives. It does this by using a systematic methodology for analyzing business processes, procedures and activities with the goal of highlighting organizational problems and recommending solutions. Professionals called internal auditors are employed by organizations to perform the internal auditing activity.


Internal audit done by a person who is the employee of that organaizaion.