Internal Audit is defined as under:
“Internal audit provides independent assurance on the effectiveness of the internal controls and risk management processes to enhance governance and achieve organisational objectives.”
Internal Audit is an independent function established within an organisation to examine and evaluate its activities as a service to the organisation. It serves the organisation to accomplish objectives by bringing a systematic, disciplined and consistent approach to assess and strengthen the effectiveness of risk management, control and governance process.
Internal Audit applicability differs from organisation to organisation. Still, it is advisable to get it carried out even if it is not mandatorily applicable to you to detect and minimise the chances of fraud & errors and review the effectiveness & efficiency of internal control operations of the organisation so that the required corrective actions, if any,can be taken well in time.
Scope and Objectives of Internal Audit
The scope and objectives of internal Audit are dependent upon the size and the structure of the entity and its management’s requirements.
The internal Audit operates typically in one or more of the following areas:
- Review of the accounting system and related internal controls.
- Examination of the management of financial and operating information.
- Examination of the effectiveness and efficiency of operations including the financial controls of an organisation.
- Physical examination and verification.
The objects of Internal Audit
are stated as below:
- Verification of the accuracy, reliability and authenticity of the financial, accounting and statistical records.
- Ascertaining that accepted accounting policies, principles and practices have been developed while preparing the financial accounts.
- The assets are purchased/disposed under proper authorisation. Also, ensuring that the access to the assets is restricted to the authorised persons at the permitted times.
- Ascertaining that the liabilities are incurred for the authorised activities of the organisation.
- The internal checks system operating in the organisation is sound and economical.
- Fraud and errors are prevented and detected.
- Reviewing overall operations of the internal control system and if deviations or weakness are noted, the same is communicated to the appropriate authorities on a timely basis.
Internal Audit Framework
The operation of the internal audit function must comply with the following code:
- Formal Charter
- Documentation of Reporting Structure
- Detailed Testing
- Liasioning with external auditors
- Audit committee and the external auditors
Effectiveness of Internal Audit
External Auditor should consider the following factors in relying on the work of Internal Auditor:
(a) The adequacy of audit programmes about the scope of the audit report.
(b) The planning of the work, supervision, evaluation and review of the documentation of the assistants;
(c) The availability of sufficient appropriate audit evidence.
(d) The appropriateness of conclusion attained and the audit report thereon.
(e) Any expectations or suspicious matters disclosed by the Internal Audit.
Why choose MAG's Internal Audit Services?
Manish Anil Gupta & Co. is known for its internal audit services in Delhi
. Following are the reasons why you should choose MAG as your internal auditors:
- Our proficient auditors adopt a risk-based approach focusing on the objectives and constraints of our clients to accomplish those objectives.
- Our services have been improved for consistent executive ordinances in all internal audit practices all over the world.
- We are contributing expertise to implement the audit work in specialised areas such as fraud investigations, monitoring of projects, implementation of systems and revenue assurance.
- Our experts' team also serves clients in various industries like Manufacturing, Telecom industries, Education, Textile and Consumer Business.
- Our services can aid both the sides - you and your counsel with a comprehensive and disciplined approach that gives practical and realistic solutions, not just reliable reports.
- Our specialists and services are centred on value creation and offer you the vision and foresight throughout the enterprise as a whole.
If you are looking for Internal audit in west delhi, MAG is the best solution for your worries. You can reach us at firstname.lastname@example.org
for internal audit assignments.