Study on the Establishment of Internal Audit System of Administrative Authorities in Taiwan
Date Issued
2005
Date
2005
Author(s)
Chen, Ching-Tsai
DOI
zh-TW
Abstract
The internal control is very important to the sound operation of an organization. Good internal control will not only help an organization prevent mistakes and fraudulence but also reasonably ensure the three objectives of effects and efficiency of the operation, dependability of financial statements and compliance with the relevant regulations that an organization can reach. The internal control is composed of five mutually related factors of control environment, risk evaluation, control activities, information/communication and supervision. The supervision refers to the procedures of self-examination on system quality of internal control. The internal audit belongs to “supervision” of the five factors and is a part of the internal control. Such a system is available in public private companies and state owned enterprises in order to enhance the internal control function. Internal audit department is not established in the central administrative authorities in Taiwan. Nevertheless, those engaged in tasks related to internal audit include research and evaluation, personnel affairs, government ethics, accounting and audit personnel. Due to lack of functional integration and insufficient professional accomplishment of audit, the current mechanism does not fully develop the interanal audit functions it should have.
After thorough exploration, there are seven defects in current audit mechanism in the central administrative authorities in Taiwan:
1.Audit function is not independently executed.
2.Insufficient professional knowledge of audit personnel
3.Without departments to be in charge of audit affecting the promotion of audit
4.Inability to develop the overall audit effects
5.The audit scope is too small.
6.Audit reports fail to reach the communication results.
7.Promotion of audit is affected.
Based on the theories of internal control and internal audit with reference of Inspector General of the U.S. and the internal audit system of businesses, we obtained the following conclusions on the establishment of internal audit system of administrative authorities in Taiwan:
1.Establishing departments with personnel in charge of inaternal audit
2.Fully ensuring the independent execution of audit power
3.Improving the professional quality of audit personnel
4.Establishing communication mechanism of relevant departments
After thorough exploration, there are seven defects in current audit mechanism in the central administrative authorities in Taiwan:
1.Audit function is not independently executed.
2.Insufficient professional knowledge of audit personnel
3.Without departments to be in charge of audit affecting the promotion of audit
4.Inability to develop the overall audit effects
5.The audit scope is too small.
6.Audit reports fail to reach the communication results.
7.Promotion of audit is affected.
Based on the theories of internal control and internal audit with reference of Inspector General of the U.S. and the internal audit system of businesses, we obtained the following conclusions on the establishment of internal audit system of administrative authorities in Taiwan:
1.Establishing departments with personnel in charge of inaternal audit
2.Fully ensuring the independent execution of audit power
3.Improving the professional quality of audit personnel
4.Establishing communication mechanism of relevant departments
Subjects
內部稽核
內部控制
internal audit
internal control
Type
other
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