The best weapon against fraud is prevention from a whole and for everyone. Rather than anticipating that such negative circumstances do not arise, it is best to be prepared and have the weapon ready to attack and win.

Many tools have been established to prevent fraud, it is time to specify, predict and avoid it with the help of internal audit service providers in Delhi. Among the tools used by internal auditors to avoid fraud, regardless of their type, the following can be mentioned in general lines: 

Audit:

There are many types of audits, but it is internal audit outsourcing India, which is used to determine the fulfilment of objectives, evaluate or improve risk management and control processes to make them more effective within any dependency, be it, organization, company, or institution.

In this sense, the internal audit has been defined as an opinion on the reasonableness, consistency, and adherence to generally accepted accounting principles of financial statements prepared by a company or by another entity for presentation to the public or other interested parties.

To this is added that it is an expression of rationality, this implies the warning. Internal audit foresees any indication that infers inconsistency, where that inconsistency can mean deviations, omissions, falsehoods; hence highlighting the importance and objectivity of the audit process.

In other words, the audit is the first tool or the “first security ring” as an independent and objective activity that prevents the commission of fraud, before which it is necessary to mention that this is independent of the type of audit that is carried out, since its essence and specific objective is the same, to determine the veracity of the data that is audited.

Internal Control

It is understood that a good internal control, emphasizes the evaluation that leads to a whole process that begins with an understanding, continues with a preliminary evaluation, compliance tests, and revaluation of controls in a company.

Without technicalities, it is the internal surveillance, in the intimate part of the company. It is to have the institution’s radar on 24 hours a day, where the main persons in charge must be senior management, but the entire organization involved.

It is everyone’s job in favour of transparency, effectiveness, which leads to the success of management, that its success will reflect true teamwork.

On the other hand, the internal auditor can also find that there is some irregularity in the financial information by carrying out analytical tests, which shows that internal auditors are sensitive to factors that affect the possibility of fraud in financial information, it means that they are attentive, alert and do what is pertinent to detect fraud.

The internal control department of a company must be sincere, free of omissions, corrections, non-consistent adjustments, that is, free of accounting fraud that affects said results and therefore the information.

As only then internal control as its process represents the “second ring of security”, to face fraud since this allows rapid detection and correction of failures and imbalances in different processes of a business. But it will depend largely on its good segmentation, separation of functions, assignment of responsibilities, and the necessary continuous monitoring, which is a foundation of prevention.

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.