Internal auditing is an important administrative control tool that aims to evaluate a company’s internal controls.
It is when all activities carried out by the company are carefully analyzed to detect risks, verify the effectiveness of controls, the integrity of information and records – and consequently, the real financial situation of the organization-, as well as verify that the internal procedures are being fulfilled.
In addition, Internal Auditing Consulting Services in India aim to verify the need to improve existing internal rules and analyze whether there is a need for new rules to be created in the company.
The audit can be performed by qualified employees from the company itself or from outside the company (internal audit service providers in Delhi).
These do not have an employment relationship with the audited company and, for this reason, have a greater degree of independence. Through inspections and examination of documents, books, and records, for example, these professionals do a kind of sweeping in the processes, information systems, and internal controls of organizations.
To maintain periodic control of the activities carried out by a company, some of them carry out biannual or annual audits.
To what extent an internal audit can be useful?
The importance of the audit is not only because it points out flaws and improvements that aim to preserve the company’s assets, but also because the process conveys transparency and reliability, which positively impacts any organization.
Knowing what the flaws are, the company can correct them, thus preventing the business from taking risks. Ensuring safety in operations, an organization identifies opportunities, increases its credibility with the market, shareholders, customers, and employees, and can promote continuous improvement.
Therefore, the audit is considered the best solution to avoid inconvenience with failures, fraud, and financial deviations.
It is for all these reasons that companies that currently do not have this type of internal audit services are deprived of all these advantages and with the risk of not having responsible, independent, and objective opinions on the internal controls established in the company, a circumstance that places the entity in a fragile and unreliable situation.
On the other hand, some companies do have this service but delegate it to a person on their staff who in turn has other tasks in charge. This does not have positive repercussions for the company since the person who performs this type of work does not have the training or experience of a professional auditor and can only work part-time, so the result can never be guaranteed.
A large number of companies that did not have a professional auditing service were seriously affected by the most difficult period of the crisis, with many of them having to definitively cease their activity.
A quality internal audit, carried out by a professional team, allows anticipating future risks and properly managing the company’s needs, which gives the entity reliability and confidence to face difficult situations such as those caused by the current crisis and effectively achieve its objectives.
The premise of objectivity and independence that governs their profession, as well as the deep knowledge they acquire of the complex system that creates a company has made internal audit consulting firms extremely necessary for today’s businesses.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by:
CA Aman Aggarwal
AKGVG & Associates