STUDY UNIT EIGHT
MANAGING THE INTERNAL AUDIT ACTIVITY I
8.1
Planning
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2
8.2
Communication of Plans
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5
8.3
Reporting
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6
8.4
Relationship with the Audit Committee
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7
8.5
Resource Management
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8.6
Policies and Procedures
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8.7
Study Unit 8 Summary
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This is the first of two study units on management of the internal audit activity (IAA). According to
General Performance Standard 2000 – Managing the Internal Audit Activity,
The chief audit executive should effectively manage the internal audit activity to ensure it
adds value to the organization.
Practice Advisory 2000-1: Managing the Internal Audit Activity elaborates on this responsibility as
follows:
1.
The chief audit executive is responsible for properly managing the internal audit activity
so that:
●
Engagement work fulfills the general purposes and responsibilities described in the
charter, approved by senior management, and accepted by the board.
●
Resources of the internal audit activity are efficiently and effectively employed.
●
Engagement work conforms to the International Standards for the Professional
Practice of Internal Auditing.
The chief audit executive (CAE) should (1) establish risk-based plans, (2) communicate plans and
resource needs to senior management and the board for their approval, (3) develop policies and
procedu