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Internal Audit
Internal audit is a type of consulting engagement and an objective assessment of an Enterprise's operations. Internal audit can be conducted to assess the strengths and weakness of financial, operational and information technology systems. Having regular internal audits can help a business improve governance, reduce risks, obtain insights and develop good management systems. Having a good internal audit team committed to independence, integrity and accountability, would serve as an excellent source of advice for the Management team.
Internal Auditors unlike Statutory Auditors do not have any statutory or legal responsibilities. Hence, internal Auditors have the liberty to consider issues beyond their scope of audit and can help an organization with its growth. Hence, a good internal audit not only provides assurance, but also consulting to help the business improve or mitigate weakness. IndiaFilings can help you find an experienced internal auditor for your Business.
Benefits Of Internal Audit
Management Tool
An internal audit can help provide an independent and objective opinion about the operations of a business. Hence, internal audits serve as a management tool for good governance.
Early Warning
Internal audits provide early warning to the Management on deficiencies or loopholes in the business. Thus, internal audits can help prevent costly mistakes or frauds in the business.
Improves Accountability
Having a strong internal audit mechanism with surprise check will help improve accountability of the employees and ensure that systems and processes are followed properly.
Process For Internal Audit
The time duration for completing an internal audit would depend on the audit objectives and scope.
Review
Prior to starting the internal audit process, the internal auditor obtains an understanding of the domain to be audited and decides on the scope and objective of the internal audit.
Internal Audit
The internal auditor executes the audit plan. He or she would gather data, test systems and verify information to complete the internal audit plan.
Reporting
Based on the data and information gathered in the internal audit, the Auditor prepares an internal audit report and discusses improvements with the Management.
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