First-party audit
The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines a first-party audit (or internal audit) as: ‘An inspection of an organisation by an auditor employed by the organisation.’
Functional Standards Common Glossary, published by the Cabinet Office, defines internal auditing as: ‘An independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.’
It defines an internal audit charter as: ‘…a formal document that defines the internal audit activity’s purpose, authority and responsibility. The internal audit charter establishes the internal audit activity’s position within the organisation; authorises access to records, personnel and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities. It should be reviewed periodically and approved by the audit committee.’
And an internal audit engagement as: ‘A specific internal audit assignment, task, or review activity, such as an internal audit, control self-assessment review, fraud examination, or consultancy. An engagement may include multiple tasks or activities designed to accomplish a specific set of related objectives.'
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