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Good day Sir, one of the functions listed in your note of an internal audit department is to “DESIGN THE INTERNALCONTROL SYSTEM”, i assumed management is responsible for designing an internal control system, please i need further explanation on this, thank you
The board of directors is responsible for ensuring that there are adequate internal controls. That does not mean that board members, or members of the audit committee, go out themselves and design the internal control systems or accounting procedures. This will be delegated and it could be delegated to internal auditors. The IA members would design systems for approval further up the organisation.
If IA designed the controls, there would then need to be some care taken in later evaluating the effectiveness of these controls as there would be a self-review threat.
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