Extent of Reliance

The extent of reliance on the internal audit work depends upon many factors some of which include the following:

1. Materiality
2. Level of audit risk
3. Judgment level required
4. Sufficiency of complementary audit evidence
5. Specialized skills of the internal auditor

In conclusion the scope and objectives of the internal auditing include the following:

1.  Reviewing the accounting systems and internal control systems
2. Examining financial and operating information for the management
3. Reviewing the economy, efficiency and effectiveness of operations and of the functioning of non financial controls
4. Review and implementation of corporate policies, plans and procedures and
5. Special investigations as may be needed from time to time