GN & Company, a newly established firm of Company Secretaries, has been appointed as internal auditors of a large manufacturing company. Partners of the firm have no prior experience of handling such large internal a

GN & Company, a newly established firm of Company Secretaries, has been appointed as internal auditors of a large manufacturing company. Partners of the firm have no prior experience of handling such large internal audit assignment independently. They are keen to know how to proceed for audit. G, Partner in Charge of the Internal Audit has undergone his practical training with you and has approached you for your invaluable guidance and mentoring in this regard. You, a senior partner of a well-established firm of Company Secretaries, told him that internal auditors should possess certain skills and competence, in addition to being independent and objective in their assessments. You advised him that effective planning is key to success for every project by quoting a well-known saying that if you fail to plan, you plan to fail. You also advised that internal auditors must plan and conduct meetings with various stakeholders including board of directors, senior management and others, to understand the business environment and their requirements. Emphasize in brief why assessment of internal control environment is so important and advise the factors to be kept in mind while assessing the control environment of the company.