A Keynote On The Various Aspects Of Internal Auditing

A Keynote On The Various Aspects Of Internal Auditing

Traditionally, the internal auditor was mainly assigned with the job of verifying the mathematical accuracy of the financial transaction accounts and other assets like stock or cash with the help of different receipts and other documents provided by the business organization. In addition to this, the modern task assigned to the internal auditor includes preparing a well-organized procedure to evaluate the efficacy of the operating programmes which is further needed to measure the effectiveness of excised controls.

An internal audit strategy is almost similar to the professional auditing programme. However, it may vary depending on the size and needs of different institutions. Moreover, all the corporate business firms keep a salaried qualified staff specifically for the auditing purpose. The main duty of the internal auditor is to confirm that every sector is working economically without any wastage. He should abide by the law and follow norm auditing procedures along with the awareness of the enterprise working principles for the betterment of the business management.

Find out more on the goals of an internal audit

  • To validate the correctness and authenticity of all the transactions and its records presented to the management
  • Make sure whether the business practices strictly stick to the accounting principles or not
  • Ease the management operation by early detection of errors and other faults that leads to wastage
  • To assist in the authorized transactions carried out by the organization leading to the effectiveness of the business
  • Analyse periodically the internal checking advised for the enterprise and to carry out special investigation procedures for the executive.
  • To showcase that the liabilities are properly met by the business firm for the authentic activities.

The extent to which all these factors are considered depends on the official employed for this purpose and an internal audit becomes successful depending on the wider opportunity granted to them to investigate the business transaction from different angular aspects. He should be independent enough to take the appropriate decisions and actions on behalf of other accounting staff members of the organization.

The relation between the internal audit and the statutory audit

Even though both these internal and statutory audits share the common goals, the soundness exhibited by the internal type discharges the statutory from the need for a detailed account checking. The statutory auditor even takes the detailed reports of verification made by the internal post to presenting test checking on the effectiveness of the internal audit.