Internal Auditing Operational Approach (2)

SOURCE:Brink- Modern Internal Auditing Approach

OPERATIONAL AUDITING CONCEPTS
A basic theme and message in this chapter and throughout this book is that an
internal auditor is primarily an operational auditor, no matter whether reviewing
a cash management process, information systems service delivery, or Sarbanes-
Oxley Act (SOA) Section 404 internal controls. The expression “operational auditor”
can cause some confusion with noninternal auditors who often tend to think
that all auditors, whether internal or external, do about the same tasks. That is certainly
not true. Internal auditors, with their strong operational approach, have a
unique and important role in service organization management at all levels.
The objective of operational auditing is, as defined in the IIA’s “Statement
of Responsibilities” standards1 “to assist members of the organization in the
effective discharge of their responsibilities.” To accomplish this, internal auditors
must place themselves in the position of both general and departmental
management to see things from both perspectives and to provide constructive
service and recommendations to the overall organization. This starts with an
internal auditor gaining a clear understanding of management’s objectives in
some areas as well as a good knowledge of the operations that will be reviewed.
This places an internal auditor in a much different role than the public accountant
external auditor who primarily focuses on the organization’s published
financial statements and the supporting financial auditing standards. An internal
auditor may become involved in some of these financial accounting issues,