Internal auditing and fraud auditing
- Internal audits with an emphasis on the Internal Control System and process auditing (compliance, efficiency and effectiveness, process risks) as an external internal auditor.
- Fraud audits
Internal auditing helps executives comply with their due diligence obligations regarding the monitoring of their organization. Internal audits identify risks and notify the executives responsible for internal issues in an appropriate manner. Management can then take appropriate measures to minimize, eliminate or bear the risks in a target-oriented way.
Fraud audits or special audits are carried out with the objective of exposing and processing malicious acts (criminal offenses) committed within an organization. The damage caused to the organization by malicious acts is to be minimized by exposing them as quickly as possible. Processing such malicious acts enables the organization to identify the causes and close any loopholes in the internal control system.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and im-prove the effectiveness of risk management, control, and governance processes. (Definition: Institute of Internal Auditors, www.theiia.org).