GENERAL TYRE PAKISTAN

Internal Auditing And EDP Accounting

Mission Statement
The mission of Internal Audit department at General Tyre is to assist management, Audit Committee and the Board of Directors in the discharge of their responsibilities through independent audits and consultations designed to evaluate and promote the system of internal controls, including effective and efficient operations.

What do they do?

Identify Risks Find Better Ways and Best Practices Partner With The Management to Find Solutions Prevent Problems

Department Structure
General Tyre has a staff of 5 auditors who are certified public accountants, internal auditors, fraud examiners or information system auditors.

Head of Internal Audit

Audit Executive

Audit Executive

Management Trainee

Audit Supervisor

Reporting to the Audit Committee and Board Of Directors

The Auditors meet and report to the Board and Committee quarterly. Which helps them: Ensure Independence Elevate issues to a level where they can be corrected Keep the relevant authorities informed

What Audit Plans Do They Follow?

At General Tyre they follow a Risk based audit plan developed with input from across the Organization. They make a list of audits for fiscal year based on;

Risk assessment and available man hours Includes estimated budget hours and completion date

They focus on areas with high risk and high probability that controls are not in place or are weak
The types of risk they usually face are fraud, improper reporting, ineffective or inefficient use of resources, credibility loss, etc.

Auditable Entities
WHAT IS AUDITED Operations and compliance Departments Management Contracts Information Technology Systems

WHAT IS NOT AUDITED Specific individuals Human Resource issues

AUDIT PROGRAMS & CHECKLISTS

These include work programs and checklist of the functions being audited/reviewed by the Internal Audit department. These work programs and checklist are reviewed on an annual basis to incorporate changes, if any, in the organizational policies and procedures and applicable laws and regulations.

Samples

TRAINING & PROFESSIONAL DEVELOPMENT

Areas requiring continuous knowledge up gradation are: International Accounting & Financial Reporting Standards (IAS & IFRS) International Auditing Standards IIA Standards for Internal Auditors Corporate Laws & Code of Corporate Governance Direct & Indirect Taxes Other Industry Specific Guidelines ISO Requirements

The Head of Internal Audit ensures that relevant training courses are attended by each audit staff every year to enhance their professional skills

What happens after the audit?

Follow-up Review corrective action Report to Audit Committee A peer review at least once every five years

Thank You!!
How many Internal Auditors does it take to help you change a light bulb? Three. One to make sure that the bulb is not overpriced and two to write the standards and tell you what you did wrong.