To make and implement the most effective management decisions from the point of view of the strategic development of an economic entity, constant and effective internal control is required at all stages of the management process.
In market conditions, the basis for the stable position of any economic entity is its financial condition, the measure of which is its financial stability.
It is the financial condition that determines the competitiveness of an economic entity, its potential in business cooperation, allows us to assess the degree of guarantees of the economic interests of both the economic entity itself and its partners in financial and other relations.
Thus, in modern conditions, the issue of managing the financial resources of an economic entity as the main and priority type of resources comes to the fore.
Considering the stages of making and implementing management decisions, it can be noted that the entire management process is based on a certain kind of information flows, the basis of which is accounting (financial) information.
The more complex the structure of the internal environment of an economic entity and the more complex and changeable the relationship with the external environment, the more information is needed to make effective management decisions.
In this regard, the role of accounting services in Delhi, which is the main information source of the management process, increases.
In modern conditions, it became necessary to go for internal auditing consulting services, which, exercising consistent control over the correctness of accounting, confirming the reliability of accounting (financial) information, provides qualified consulting services to improve the accounting methodology, as well as the financial condition of an economic entity.
Using the knowledge of accounting methodology, accounting standards, understanding the essence of financial and business transactions, as well as the skills of a financial analyst, the internal control service, determining the effect of each financial and business transaction, interpreting changes in specific reporting items, forms certain conclusions and gives the necessary recommendations for adoption or adjustments to management decisions of an economic entity.
Before defining the place of internal audit in the process of managing an economic entity, and in particular in the internal control system, let us consider the main characteristic features of this system.
The internal audit consists of three main elements:
- A properly organized accounting system.
- Control environment.
- Separate controls.
Based on this, you should turn yourself to auditing services in India that generate sufficiently complete, timely, and reliable information about financial and economic activities, ensures control over the presence and movement of property, as well as prevents the possibility of abuse.
An internal audit is the main element of an internal control system that is designed to ensure the effectiveness of the entire internal control system and the optimization of management decisions.
The providers of internal auditing consulting services are obliged at all stages of their activity to solve certain tasks assigned to them, to proceed from a well-known position of professional scepticism, realizing that there is a possibility that all information received from various sources may carry a certain level of unreliability
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