Accounting and auditing are important to control functions, as well as a means of solving problems, both economic and social development of the company. Modern business is becoming complex and multilevel and hence the role of Internal Audit Consulting Firms for maintaining internal control in the business is becoming more and more important.

Internal control is a process aimed at achieving the company’s goals by planning and organizing monitoring activities of the enterprise as a whole and its units.

The company’s managers must, first, determine the purpose and objectives of the company, to build an appropriate structure of the organization. Secondly, they must ensure the functioning of an effective system of record-keeping and reporting, division of powers, monitoring of results to achieve the set goals. And all this can be done by having an internal audit of your business. 

Top Audit Firms in India aim to increase and maintain the value of the organization by providing risk-oriented and objective audit services, consulting, and professional opinion.

Therefore, the first conclusion: internal audit is not the same as the internal control. Internal audit is an element of the internal control system that evaluates its effectiveness and reliability. Internal audit serves primarily the interests of enterprise managers. An effective internal audit system can reduce an enterprise’s external audit costs, although it cannot completely replace it.

The internal auditor identifies and analyses possible external and internal risks during the development and implementation of new projects, as well as develops recommendations for reducing the level of risk or minimizing possible losses.

Responsibilities of internal auditors:

• Monitoring the costs of funds for various projects or programs, analysis of financial and management reporting of the company and its timeliness;
• Evaluation of concluded contracts and fulfilment by the parties of their contractual obligations;
• Assessment of control systems within the existing and newly implemented information systems.

Much depends on the internal culture of the enterprise and the willingness of managers to work with the internal auditor.

Unfortunately, the staff is not always aware that the auditor does not control the performers, but the workflow, identifying shortcomings in existing processes, rules, and procedures, thereby helping companies achieve better results. Therefore, another specific task for the internal auditor is to establish effective communication with colleagues.

Internal audit operates independently within the organization, it is conducted by professionals with a deep understanding of the importance of strong management, business systems, and processes, which have a basic motive to help their organizations more effectively manage risk.

Internal audit adds value to an organization when it focuses on preventing adverse events while providing objective confirmation of the accuracy of the information and providing an idea of the efficiency of risk management, corporate governance, and internal control.

In practice, the duties of the internal auditor are determined by the information needs of the company’s management. Moreover, to conduct an internal audit independently, the auditor needs to have a piece of good knowledge about business and finance.

To carry out such a great task, the engagement of experienced professionals is necessary, and hence, you should contact the expert team of AKGVG as this internal audit consulting firm is well-known and trustworthy enough to offer you the best services.

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