What is an internal audit? aaa-cas.com
by Aaa Cas Auditors & Business Consultant in DubaiThe internal
audit is a system of internal control of the company and consists of a set
of measures, policies and procedures established in a particular organization
to protect their assets, minimize risk, increase efficiency of business
processes and optimize and monetize ultimately, the business.
As a company grows in volume, internal auditing
becomes apparent. The reason? The more the company grows, the more impossible
the management is to control each and every one of the processes that the
company uses.
Thus, through internal auditing, it is easier for
management to verify that all the functions in each of the departments are
being carried out, objectively analyzing them and taking measures when
necessary.
What is an
internal audit for in an organization?
The internal audit allows carrying out an updated
follow-up of the management of a business, as well as a method of control of
financial management.
Thanks to the performance of an internal audit, the
percentage of probability that an organization will increase the achievement of
its objectives is very high. And because? Well, because an internal audit is
used to detect scams, fraud, and any diversion of money or goods, among other
things.
Internal audit is precise to detect any deviation
in an organization and to be able to correct it as quickly and efficiently as
possible.
The internal audit will be carried out by people
with sufficient technical knowledge, such as auditors or a person from the
company itself with sufficient professional capacity to do so. They must carry
out their work in an impartial, independent and objective manner and always
keeping under professional rigor.
Likewise, the organization must provide the auditor
with all the information and files necessary to carry out an investigation as
accurate as possible, thus allowing a faithful and truthful evaluation of what
really happens in the accounting and financial field of the company.
Objectives
of the internal audit
Internal Auditors in Dubai becomes necessary
as a company grows. Otherwise, the review and control by management would be
very complicated and the analysis and study of the company's progress would
possibly be done in a way that is not very objective and far from reality.
An internal audit must be done based on a plan
previously drawn up and designed, based on the policies and procedures of the
company in question. Likewise, the internal audit is aimed at complying with
the following points:
- To what extent are the plans and procedures derived from management fulfilled.
- Review and evaluation of the application of operational, accounting and financial controls.
- Carry out an inventory control so that all the assets that the company owns are registered protected and subject to the pertinent regulations.
- Verify and evaluate the accounting information that it is truthful and responds to the economic reality of the company.
- Carrying out special and extraordinary investigations that the management requires.
- Preparation of audit reports on the irregularities that can be found at the end of the investigations, also determining possible recommendations to solve them.
- Monitoring of compliance with the recommendations determined in reports and audits
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Created on May 16th 2022 03:26. Viewed 216 times.