The Internal Auditing Handbook

Citation

Gin Chong, H. (1998), "The Internal Auditing Handbook", Managerial Auditing Journal, Vol. 13 No. 6, pp. 391-391. https://doi.org/10.1108/maj.1998.13.6.391.3

This is the most updated handbook for internal auditors. It offers a fascinating insight into the theoretical framework and the applications of these frameworks in the practical world of modern internal auditing. Although founded on professional audit theory, it incorporates the real‐life experiences of the audit practitioner. The handbook is divided into four parts:

1. 1.

   1The theoretical framework. This part offers a general discussion on the definitions of internal auditing, and it also covers the historical development of internal auditing, the ethical and behavioural aspects of internal auditors, standards of workconducted by internal auditors, and relationships with audit committees, external auditors and the board of directors.

2. 2.

   2Audit techniques. In general this part covers the practical aspect of the planning process of internal auditing. It analyses the importance of audit risk, and covers a whole range of detailed discussions on approaching audits. These include testing of samples, the importance of working papers, styles and skills in conducting interviews, and the reporting of audit findings. It also stresses the importance of having a proper internal audit manual for audit teams.

3. 3.

   3The management of internal audit. This part of the handbook looks into two main aspects of internal auditing:

1. 1.

   the importance of the resourcing of the internal audit unit, recruiting and the performance appraisal of internal auditors, and

2. 2.

   having the right person in the audit team, how internal auditors should take a more proactive approach to managing change occuring through strategic shift and environmental need.

1. 1.

   4Specialist auditing. This covers the approaches to computer auditing, and procedures to conduct investigations of fraud.

The handbook represents a wealth of knowledge and practice which has proved successful the world over. Filled with numerous illustrations, case studies, and assignments to address key problems faced by modern audit teams, and with possible solutions offered to overcome awkward situations, it is valuable to new, and even “reborn” auditors seeking for initial ideas on the subject, as well as useful to more experienced auditors who cannot be expected to have explored every aspect of the agenda included in the handbook. This is also a good source of reference for students taking professional examinations.

The only pity is that the handbook may not be affordable by everyone, due to its price tag, but it is a must for libraries in corporations having internal auditing units, as well as in the libraries of reputable institutions of higher education. The price is, however, not totally unreasonable given the inclusion of a computer disk containing hundreds of pages of additional material and valuable documentation.