internal controls

In order for the internal controls of institutions to have a tangible impact on different economies, and to avoid all the problems that result from unethical behaviors and behaviors by individuals and groups in charge of various work in organizations, it is necessary to ensure the quality of the legislation applied in those economies and their compatibility with internal and external controls, which comes on A set of standards that define the overall review mechanism, called the International Standards for Auditing.

International Standards for Auditing

  • Emphasis on the existence of an effective regulatory and legal framework for public institutions and administrations.
  • Adopting efficient internal audit units.
  • The existence of interaction between the board of directors and senior management, and the necessity of relying on them on the internal audit function to improve the corporate governance process; This is because the internal auditors have an important role in providing advice and achieving risk management in a safe and secure manner.
  • Equal treatment of all owners, whether the state is in the public sector, or individuals in the private sector.
  • Clarify relations with stakeholders by activating the role of internal audit units in all work departments to achieve this.
  • Achieving transparency, disclosure, and disclosure by activating the work of public oversight bodies in the public sector, which constitute Parliament, the Audit Bureau, the Civil Service Bureau, departments and bodies of the central inspection, anti-corruption bodies, and oversight bodies.
  • Determining the responsibilities of the boards of directors of public institutions and the Council of Ministers, each according to its field.
  • The existence of laws governing how shares and bonds are issued and traded, and the responsibilities and obligations of the sources of securities and market intermediaries.

Factors for implementing international standards of auditing

  • Existence of clear tax laws that are fair and transparent, and that ensure adequate disclosure of financial data that takes into account the requirements of the market economy, and are effective and accurate.
  • The existence of an independent and effective judicial system, capable of expediting various cases in an efficient and fair manner, free from any influences.
  • The existence of a transparent accounting system that allows obtaining reliable financial data based on international accounting and auditing standards.
  • Raise the efficiency of government departments and agencies, and reduce bureaucratic procedures in them by activating coordination between internal work procedures in those departments and agencies, and regularly evaluating their performance according to clear and specific criteria.
  • the existence of mechanisms for participation; By establishing professional associations and bodies for each of the sectors regulated by laws to ensure their effectiveness, and these professional associations and bodies actively contribute to the process of setting various government policies, and legislative and oversight processes.
  • Achieving integration between the external and internal audit by providing real detailed information that helps to make effective decisions, ensure the integrity of the audited financial statements, the strength of the internal control system adopted in the institution, and the knowledge of weaknesses to allow them to be addressed.

International Standards of Auditing

writing – on the date : – Last updated: 2022-06-10 09:48:01