The scale, diversity and complexity of the company’s activities.
The number of employees.
Cost/benefit considerations.
Changes in the organisational structures, reporting processes or underlying information systems.
Changes in key risks (could be internal or external in nature).
Problems with existing internal control systems.
An increased number of unexplained or unacceptable events
– The scale, diversity and complexity of the company’s activities.
– The number of employees.
– Cost/benefit considerations.
– Changes in the organisational structures, reporting processes or underlying information systems.
– Changes in key risks (could be internal or external in nature).
– Problems with existing internal control systems.
– An increased number of unexplained or unacceptable events.
Large companies having lots of employees will have higher chance of fraud and misappropriation and so Internal Auditor will be needed.
In the large organization, the value provided by internal auditor by reducing the risk of fraud will be much higher than the Cost for Internal audit.
For the publically listed company, internal audit is compulsory in lots of countries.
This lesson is waiting for its secure Vimeo video.
