Page 317 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
(CNO—IA.060) CORE PRINCIPLES FUNDAMENTAL TO INTERNAL AUDIT FUNCTION --
INTEGRITY, OBJECTIVITY, AND INDEPENDENCE OF INTERNAL AUDITOR

(CNO—IA.070) QUALITIES OF INTERNAL AUDITOR

(CNO—IA.075) Performing Internal Audit Engagement
Typical internal audit engagement comprises of following five steps:
Step 1 – Obtain knowledge of the Business and its Environment
Step 2 – Perform Audit Planning
Step 3 – Gather required information.
Step 4 – Perform audit checks.
Step 5 – Reporting of Internal Audit Issues
All of these steps are required to be performed while performing any Internal Audit engagement in the same
sequence. Let us see some of the major activities to be performed under each of these steps:
Performing Internal Audit Engagement
Step 1 – Obtain knowledge of the Business and its Environment

Regulatory Landscape: Internal auditor must obtain knowledge of the regulatory landscape and various laws
and regulations applicable to the organization.
Stakeholder Meetings: Internal Auditor must conduct meetings with key stakeholders, Board of Directors,
and Key management personals to understand the organization’s business environment, operations, vision,
mission, and top management’s expectations from the audit functions.

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