Every organization should focus on having an independent auditory team in order to get time-to-time free accounting and financial reporting, & performance evaluation. An experienced and professional internal auditor specializes in keeping a constant check on the finance and accounting practices. So, it is important for the audit team to set rapid KPI’s with the help of internal audit. It is totally different from statutory audit.
Let’s have a look, how!
What is Internal Audit?
As it is clear from the name, an internal audit happens within the organization. So an independent auditing team, who should be a part of the organization, need to review the overall financial, accounting and operational activities within the organization. It helps businesses to review, examine and control the internal system of the organization.
The Institute of Internal Auditors (IIA) says, “ internal audit is an independent, objective assurance and guiding activities designed in order to add value and improve organizational activities. Internal auditing activities are helpful to accomplish financial objectives and enhance business performance. Businesses can use it as a disciplined approach to evaluate and examine the effectiveness of the governance process, risk management and control internal activities.
What is Certified Internal Auditor Responsible for?
An internal auditor is a part of the organi who work independently and comprehensively to evaluate organizational financial and operational activities. Hiring an internal auditor helps to gather relevant information and appropriate facts about the organization. He/she essentially serves as the eyes of the company to lead financial decisions and business matters. The Auditing committee assigns work to an auditing team that allows them to check the history of the organization and work on financial reporting audits.
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Core Objectives to Hire Internal Auditor for Business
- Financial Control & Decision
One of the major objectives of hiring an internal auditor is to keep complete eye and stringent control over the financial activities within the organization. It is a duty of the internal auditor to search and submit important facts and information related to accounting and operating activities of the organization. Internal auditing system of the organization allows the auditor to collect evidence of what is happening within the organization in order to offer proper assurance of authenticity of the financial statements, records and reports. Auditors help management to take complete control and get efficient decisions.
- Review Perfect Accounting System
A perfect internal auditor keeps a very clear and close check on the accounting systems. An experienced auditor helps organizations to examine each and everything from the vouchers, bills, etc. and inform business authorities about every transaction and mathematical accuracy. An auditor examines and verifies every mistake and fraud to reduce fraudulent activities. The organization can effectively examine and verify mistakes, weak points on financial statements, strengths of the business.
- Asset Protection
The process of internal auditing always includes a depth valuation, examination and analysis of complete financial, operational and managerial activities. Internal auditor also helps to examine and take complete records of specific transactions related to sales, purchases and expenses related to asset revaluations.
- Fraud Detection
If a company has internal audit procedures in place, the detection of fraudulent activities becomes easier and effective. This is because a year-around check on the employees is completely included in internal auditing which helps organizations to keep an eye on their employees. It reduces the time gap between the occurrence of fraud and its prediction. Thus, internal auditors help to dissuade employees from committing any kind of fraud.
Working with an expert and independent internal auditor helps any organization to enhance their business presence and goodwill in the market. A professional auditor helps management to conduct test checks, set KPIs, & flexibly save both time and money for organizations. It also helps businesses to keep an eye on their employees which reduces communication gaps and mentality to commit fraud. For more details, consult with expert internal auditors.