Index

Introduction...................................................................................................................................3
As for the objectives:...
Specific objectives................................................................................................................3
1. Methodologies and phases of the Internal Audit process..................................................4
1.1.Audit...............................................................................................................................4
2. Audit Phases................................................................................................................4
2.1. Planning......................................................................................................................5
2.2.Internal Audit Risks...............................................................................................6
2.3. Internal Audit Procedures7
2.4. Audit preparation and preliminary examination.................................................................8
2.5. Execution............................................................................................................................8

2.6. Closing and Follow-up...............................................................................................8

3. Conclusion............................................................................................................................12

4. Bibliographic reference13

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Introduction
The present work has as its theme, methodologies, phases, and processes of
internal audit. Where we will briefly explain the functioning of
internal audits within an institution.
Assuming that auditing is an activity that aims to
observance of a company's operation, that is, internal audit is
an independent activity, of objective assessment and consulting, that has
to add value and improve the operations of a
organization. It intends to help the organization in the pursuit of its
objectives through a systematic and disciplined approach, in the evaluation
of the effectiveness of risk management, control, and governance processes.
As for the objectives, we have the following:
Understand how internal auditing works.
Specific objectives
Identify the phases of internal auditing in different contexts of
auditing work;
Describe the phases of internal auditing;
Analyze the importance of internal audit in control.
organization in risk management.

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1. Methodologies and phases of the Internal Audit process
1.1.Audit
According to Franco (1996, p. 19), "since its appearance, the
accounting has become an organized set of knowledge, with
defined objectives and purposes, has been considered as an art, as
technique or as science according to the orientation followed.
Accounting is quite old, and it is increasingly expanding for the better.
meet the expectations of companies, whether they are small, medium or
large door.
According to Attie, 1992, accounting is the science that studies, informs, represents and
shows its users, (investors, clients, owners,
financers, etc.), the company's asset situation. Foundational knowledge of
a specialization called auditing, which is based on a tool
of controlling one's own accounting.
With the economic-financial advancement and the emergence of large companies
In several countries, auditing became necessary.
The audit is considered a branch of accounting, an accounting technique that
check the accuracy of the records and accounting statements and everything
related to the control of the company's assets.
2. Audit Phases
The internal audit is carried out by professionals from the company, that is, the auditor
The intern is a collaborator of the company, where they will be responsible for compiling the

information to be examined, at certain periods of time,

observing the execution of policies, legislation, efficiency, and aspects
traditional of the company.
Within the scope of accounting and control, one should always think that
the internal audit "is unnecessary". There is nothing that the internal auditor should
to know more than the person in charge of the controller, and that requires a
review.

The activity of controlling is a function of the controller, and he should not imagine
that something can be reviewed or corrected (PADOVEZE, 2010). Due to the
growth of organizations along with their activities and processes,
It is necessary to give due importance to the standards and procedures.

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internally, in light of the fact that, the administrator, or owner of the company,
there are no conditions to personally supervise all stages of
various activities of your business.
Quality audits are an important tool to help in
growth and prosperity of organizations. They provide mechanisms
to evaluate the efficiency of the business.

Although quality audits are focused on processes and products,

they help managers identify if the applied strategies are
bringing results. In case of deviations, they also help to identify the
root cause and take necessary corrective actions. Conduct an audit
correctly is essential to demonstrate to the market and to clients the
compliance of the QMS with the standard.

Steps to successfully conduct quality audits:

2.1. Planning
According to Franco (2011, p.112) the actions taken at the moment prior to
The execution of the audit is crucial for the success of the activities.
planning begins with the development of a plan, which will guide the
execution of the audit. This plan must present all activities
on a timeline, beyond the scope, with processes, departments or
products that will be audited.

At this stage, it is also important for the auditor to identify all the
related documentation, such as quality policies or procedures.
At this stage, a preliminary list of people who will be can still be prepared.
interviewed.

The planning of the Internal Audit work includes the examinations

preliminaries of the areas, activities, products, and processes, to define the
amplitude and the time for the work to be carried out, according to the guidelines
established by the entity's administration.

The planning must consider the relevant factors in the execution of

works, especially the following:

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a) The detailed knowledge of politics and management tools
risks of the entity;

b) The detailed knowledge of operational activities and systems

accounting and internal controls and their level of reliability of the entity;

c) The nature, opportunity, and extent of the audit procedures

interns to be applied, aligned with the risk management policy of
entity;

d) The existence of associated entities, subsidiaries, and related parties that

be within the scope of the Internal Audit work;

e) The use of specialists' work;

f) The audit risks, whether due to volume or complexity of

transactions and operations;

g) The knowledge of the result and the measures taken in relation to

previous, similar, or related works;

h) The guidelines and expectations expressed by the management to

internal auditors;

i) the understanding of the mission and strategic objectives of the entity.

The planning must be documented and the work programs

formally prepared, detailing what is necessary for understanding
of the procedures that will be applied, in terms of nature, opportunity,
extension, technical team and use of specialists.

Work programs should be structured to serve as a guide.

and means of controlling the execution of the work, must be reviewed and
updated whenever circumstances require it.

2.2.Internal Audit Risks

The risk analysis of Internal Audit should be conducted during the planning phase.
of the works; they are related to the possibility of not achieving, in a way

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satisfactory, the objective of the work. In this sense, they should be considered,
mainly, the following aspects:
a) the verification and communication of any limitations to the scope of
internal audit procedures to be applied, considering the volume
or the complexity of transactions and operations;
b) the extent of the internal auditor's responsibility in the use of the work of
specialists.
2.3.Internal Audit Procedures
The procedures of Internal Audit consist of examinations and investigations,
including compliance tests and substantive tests, which allow the auditor
internally obtain sufficient subsidies to support their conclusions and
recommendations to the entity's administration.
The compliance tests aim to obtain reasonable assurance that the
internal controls established by management are in effect
functioning, including regarding its compliance by the employees and
administrators of the entity. In your application, the following must be considered

following procedures:
a) Inspection - verification of records, documents, and tangible assets;
b) Observation - monitoring of a process or procedure when
its execution;
c) Investigation and confirmation – obtaining information from people
physical or legal entities knowledgeable about transactions and operations, within or
outside the entity.
The substantive tests aim to obtain evidence regarding sufficiency,
accuracy and validity of the data produced by the information systems of
entity.
The information that supports the results of the Internal Audit is
called "evidence", which must be sufficient, reliable,
relevant and useful, in order to provide a solid foundation for the conclusions and

recommendations to the entity's administration.

The process of obtaining and evaluating information comprises:
I - the obtaining of information on matters related to the objectives and
within the scope of Internal Audit, it should be noted that:

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a) sufficient information is that which is factual and convincing, in such a way
that a prudent and informed person can understand it in the same way as
the internal auditor;
b) the appropriate information is one that, being reliable, provides the best
achievable evidence, through the appropriate use of Audit techniques
Internal
2.4. Audit preparation and preliminary examination
This is the moment when the auditors will be able to get to know a little more

about the company's QMS, analyzing the documentation in more depth.

system.

It is important that each member of the audit team is prepared for the
activity, with access to the verification checklist. The checklist is essential
to guide the auditor so that no detail to be evaluated is forgotten,
as well as to record the findings and observations.

2.5. Execution
The execution of audits is carried out through the collection of information, which

determine if the department in question is following the standards and

established quality control procedures.

At this stage, the auditor interviews people, asking questions and taking notes.
the findings. According to what is found, the audit plans
checklists can have their scope expanded, and can be submitted to a
deeper assessment.

It is at this moment that non-conformities will be recorded, that is,

situations that occurred in disagreement with the process and procedure
standardized.

2.6. Closing and Follow-up

After the audit has been completed, the 'real' work begins.
the audit team meets to review the problematic areas, and to
determine the recommendations to correct quality issues. These
information will be part of the report.

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Freitas, (2007, p. 135), the execution of the audit consists basically of
verification of management system compliance through collection of
information, observations of facts and evaluation of documents and records that
allow the auditor to infer, based on the sample of documents, records and
other information analyzed regarding the effectiveness of the management system
evaluated. Regardless of the area, scope, objective, or audit criterion,
it should be kept in mind that a management system exists to, in its essence,
ensure that the management system policy is achieved. Thus, when conducting
the compliance audit must:

Collect evidence through the analysis of documents and records, observations

of activities, rehearsals, tests, processes, and other sources of information
available. Many of this information is made available to the auditor through
of interviews with the audited. Use, but not limited to, the list of
verification prepared.

Interview the professional who has good knowledge about the subject.
audit, which can range from a director to a line supervisor or a
forklift operator. The person in charge of the area does not always have all
the necessary information.

Randomly show the records you want to evaluate. The quantity of

records should be at the auditor's discretion, emphasizing the sampling nature of
audit. If several records are evaluated and there are no issues, one can have
an indication of the system's compliance. Otherwise, they may be requested.
more records. There are specially prepared inspection plans
for use in audits. However, the volume of samples is very
large, which would make the audit impractical.

According to Cordeiro (2011, p. 22), to note the information, references or

indications of non-compliance in the checklist or other document of
applicable work. Special attention must be given to ensure that the information
noted are sufficient for the preparation of a clear and objective report.

Report to the audited party any potential nonconformity at the moment when the
the same for evidenced, in order to obtain consensus regarding the problem

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identified. The auditor, within their responsibilities, has the duty to
verify the compliance of the management system and report any non-conformities
identified nonconformities, but the duty to execute the corrective action lies with the

audited. Otherwise, the auditor loses their independence and the audit
transforms into consulting.

Interfere as little as possible in the activities of the audited. If necessary

to address a person or activity that is not included in the scope of
audit, but it is important to evaluate the effectiveness of the management system,
the consent of the audited or the audit guide must be obtained.

Manage the audit time in order to complete all activities

scheduled within the planned. If there is a need for an investigation
additionally, conduct them within the available time. Otherwise, wake up with
the audited a new audit or an extra schedule during the day. The
The auditor should never be late. If delays occur, let it not be due to
problems with the auditor, unless, of course, in exceptional cases, such as
health unforeseen circumstances. For the opening meeting, always arrive with a certain

in advance, but not to exaggerate so as not to impair the final arrangements of

audited.

Finally, the closing meeting that should be coordinated and led by the
team leader of the audit, who has the opening word, passing it to the
other auditors and the audited when relevant. The closing meeting
just confirms the findings consolidated during the execution of
audit. It should be quick and objective. They should participate in this meeting, in

minimum, the audit group, the audit guides and those responsible for the areas
audited. Whenever possible, the management representative and the senior
administration should also participate, especially if the internal audit
for all areas of the company, (Cordeiro, 2011, p.25).

We should try to keep the same participants in this meeting as in the previous one.

opening. If there are other people present, they must have

knowledge of the audit process and the results obtained throughout
its execution. Otherwise, the closing meeting becomes lengthy and

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repetitive, as many questions arise from people who do not know all the
facts.

Before this event, the auditors can hold a brief meeting among the
group in order to agree on the final evaluation result and define the points to
will be commented on in the meeting. This quick meeting is also coordinated by
team leader of the audit. This meeting includes:

Presentation of auditors and audited parties, especially for the case of the
presence of people who did not participate in the opening meeting. In the
internal audits, often people already know each other and this
presentation can be omitted.

Thanks to the audited entity for the support and time devoted during the execution.
of the audit.

Confirmation of the areas, scope, objective, and specified standards that were
used in the audit.

Confirmation of the final audit schedule, describing the areas, auditors and
involved schedules.

Presentation of the most concerning non-conformities, summarized and

Objective. The positive points identified should also be highlighted.

Delivery of individual non-compliance reports and final report in a timely manner

to agree with the audited party on the deadline for defining the actions to be taken
and dates for its implementation and verification of the effectiveness of the actions.

Clarifications of any doubts from the audited party regarding

reports delivered, non-compliances found and other matters.

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3. Conclusion
Arriving at this moment of fulfilling the present work, we conclude
that an internal audit service cannot lose sight of that
it should function as a management tool serving the organization in
that is inserted, which develops its activity in a dynamic environment and
complex, looking for, namely, to identify and anticipate problems,
analyze their causes and the risks associated with them.

Therefore, it is necessary to identify and analyze critical processes and propose solutions.

for your improvement, aiming at the enhancement of the organization.

Internal audit activities are extremely vast, covering the whole of

organization, in all aspects of its operations and at all levels of
its organizational structure. The internal audit's main function is to evaluate the
management process. It differs in this aspect from external audit, which is more
focused on the financial aspect and the organizational activities that can
to have a direct effect on the financial statements.

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4. Bibliographic reference
Cordeiro, C. M., 2006, "Tests in Auditing: A Conceptual Review Applicable
In Practice”, Santa Cruz College Journal, Vol. 5, No. 2: 5-9
Costa, A., 2007, "Growing Importance of Analytical Procedures in
Audit
FRANCO, Hilário, MARRA, Ernesto (2011). Accounting Audit, 4th ed.
updated, São Paulo, Atlas.
Freitas, C. A., 2007, "Materiality, Risk, and Sampling in Auditing"
in VV.AA, Themes of Accounting, Taxation, Auditing, and Law of
Societies, Braga, J. G., Malheiro, M. and Guimarães, M: 135-149.
s.a., s.d, "Audit Techniques", S.l. Court of Auditors of the State of Bahia.
Available at URL:
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s.a., s.d., "Audit Techniques", S.l., Federal Senate. Available at URL:
http://www.senado.gov.br/sf/SENADO/scint/insti/internal_controls_07_technical
s_auditoria.asp

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