What is internal audit?
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations (The IIA).
What is external audit?
The Lebanese’s Association of Certified Public Accountants (LACPA) defines it as:
“A Certified Public Accountant (CPA) is any/all natural person performing in his name or on behalf of another legal entity: auditing and appraisal of all types of accounts and rendering an opinion as to the authenticity and accuracy of financial data. External audit renders an opinion as to the fairness of financial statements."
What are the components of audit observations?
The component of audit observations are the 5 Cs:
1. Condition
2. Criteria
3. Cause
4. Consequence
5. Course of Action
To whom are internal audit reports issued?
Internal Audit reports are first issued, Draft, to the auditee. Once observations are validated, risks are set, and courses of actions are agreed-upon, the report shall be issued, Final, to the auditee with copies to the concerned parties.
Copies of all Final reports shall be sent, in due time and in the agreed-to level of detail, to the President and the Board of Trustees.