In their work, the Internal Audit Service Providers in Delhi sometimes get the nickname – “Corporate police”. An internal audit is an independent assessment function within the entity/organization to test and evaluate the activities carried out.
Internal audit is a process of examining financial transactions and internal control in a company to ensure that it runs according to predetermined standards.
The role of the internal auditing consulting services in India in the organization is very necessary and important.
Internal auditors provide the information needed by managers to carry out their responsibilities effectively. They act as independent assessors to review the organization’s operations by measuring and evaluating the adequacy of controls as well as the efficiency and effectiveness of the organization’s performance.
Internal auditors are those who work in companies whose main task is to determine the policies and procedures that have been set, have been fulfilled by top management, and find out whether the level of the protection of the organization’s assets is good or not.
Internal audit also determines the efficiency and effectiveness of organizational activity procedures and the reliability of the information.
Initially, internal auditors played more of a supervisory role or management’s eyes and ears because management needed certainty regarding the implementation of policies that had been set to avoid deviant actions.
Over time, the main focus of internal audit has shifted to being a consultant for the company or its clients, namely helping operational work units manage risk by identifying problems and providing suggestions for corrective actions that can provide additional value as ammunition to strengthen the organization.
Even in the future, it is predicted that the role of internal auditors will be a catalyst that will participate in determining the goals of a company or organization.
Internal auditors identify and manage risks that occur at each level of the organization and provide advice to minimize the risks that occur.
The internal auditor has a function as an examiner as well as a managing partner. All levels of management can become clients of internal auditors. Therefore, internal auditors are obliged to serve clients well and support the interests of clients while maintaining their loyalty.
Fraud detection and prevention
Internal Audit also functions to assist management in preventing, detecting, and investigating fraud that occurs in an organization.
Not everyone is honest if everyone was honest, no company would need to be wary of acts of fraud. However, many people admit to committing fraud when the environment in which they work has low integrity, low control, and high pressure.
These three things will trigger people to behave dishonestly. Fraud can be prevented by creating a culture of honesty, and openness and minimizing opportunities to commit fraud.
Internal auditors as a catalyst are actively involved in conducting risk assessments contained in the organization’s business processes. Therefore, they keep a proactive attitude in recognizing the risks that are faced or may be faced by management in achieving organizational goals.
The catalytic role carried out by internal auditors is not only limited to corrective actions and providing advice but also includes system design and development, reviews of human resource competencies in an organizational function, involvement in the preparation of corporate planning, performance evaluation, budgeting, strategy formulation, and proposed changes.
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