Internal auditing activity is primarily directed at evaluating internal control, so as to achieve the below objectives
- Effectiveness and efficiency of operations.
- Reliability of financial and management reporting.
- Compliance with laws and regulations.
- Safeguarding of Assets
The focus is to deliver 4C’s reporting/finding which are
- Condition/Observation: What is the particular problem identified?
- Cause/Root Cause: Why did the problem occur?
- Consequence/Impact: What is the risk/negative outcome (or opportunity foregone) because of the finding?(May entail statutory/financial consequence)
- Corrective action/Recommendations: What should management do about the finding?