How the evaluation of internal audit function can be helpful to the secretarial auditor in performance of his duties ? Describe.

Evaluation of internal audit function by a secretarial auditor During the performance of the Secretarial Audit, the secretarial auditor also needs to report on the adequacy of systems and process in the company. The internal audit function greatly assist the Secretarial auditor in determining the extent to which he can place reliance upon the work of the internal auditor. The Secretarial auditor should document his evaluation and conclusions in this respect. The important aspects to be considered in this context are: Organisational Status - Whether internal audit is undertaken by an outside agency or by an internal audit department within the entity itself. The internal auditor reports to the management, in an ideal situation he reports to the highest level of management and is free of any other operating responsibility. Scope of Audit Function - The external auditor should ascertain the nature and depth of coverage of the assignment which the internal auditor discharges for management. He should also ascertain to what extent the management considers, and where appropriate acts upon internal audit recommendations. Technical Competence - The external auditor should ascertain that internal audit work is performed by persons having adequate technical training and proficiency. Due Professional Care - The external auditor should ascertain whether internal audit work appears to be properly planned, supervised, reviewed and documented. An example of the exercise of due professional care by the internal auditor is the existence of adequate audit manuals, audit programmes and working papers. Monitoring of internal control - The internal audit function may be assigned specific responsibility for reviewing controls, monitoring their operation and recommending improvements thereto. Examination of financial and operating information - The internal audit function may be assigned to review the means used to identify, measure, classify and report financial and operating information, and to make specific inquiry into individual items, including detailed testing of transactions, balances and procedures. Review of operating activities : The internal audit function may be assigned to review the economy, efficiency and effectiveness of operating activities, including non-financial activities of an entity. Review of compliance with laws and regulations : The internal audit function may be assigned to review compliance with laws, regulations and other external requirements, and with management policies and directives and other internal requirements. Risk management : The internal audit function may assist the organization by identifying and evaluating significant exposures to risk and contributing to the improvement of risk management and control systems. Governance : The internal audit function may assess the governance process in its accomplishment of objectives on ethics and values, performance management and accountability, communicating risk and control information to appropriate areas of the organization and effectiveness of communication among those charged with governance, external and internal auditors, and management.