In the traditional sense, internal audit activities aim to find and eliminate all kinds of risks. In other words, top audit consulting firms in India provide an overview of whether the activities within an enterprise are carried out under predetermined standards, policies, and targets.
Auditors follow an organization, process, and system-oriented approach, an approach that examines whether the right job is done rather than whether the job is done correctly is on the agenda.
Top audit consulting firms in India provide consultancy to senior management and enables management to make informed decisions. The effectiveness and efficiency of the activities are investigated in the audit reports and recommendations are made to the management in this regard.
The manager who orders an audit will have a global vision of the company. Based on the diagnosis made by top audit consulting firms in India, the business owners and managers become able to make good decisions to support and sustain the activity of their organization in the long term.
Top audit consulting firms in India aim to improve the activities of an institution and add value to them, without assuming any administrative responsibility. It is extremely important not to assume any administrative responsibility in consultancy services.
Internal audit, its components, and the increasing need for consulting services
It is seen that the internal audit activity has two functions.
- Providing assurance
- Consultancy
The assurance function is the most classical function of the audit activity. Assurance Services is an objective examination of findings to provide an independent assessment of the organization’s risk management, control, and governance processes.
Assurance services generally have three parties:
(1) The person or group directly involved in the process, system, or other issues under consideration (the process owner),
(2) The person or group that makes the assessment (the auditor), and
(3) The user of the assessment
The consultancy function of the audit activity creates great opportunities in terms of both the effectiveness of the audit activities and their contribution to the assurance activities.
These two dimensions complement each other and allow the execution of the purpose and function of the audit.
However, when we look at the audit practices in companies in general, although there are exceptions, it is seen that internal audit mostly concentrates on assurance activities and the consultancy function is not given sufficient importance.
There are various reasons for this situation. However, the consulting function forms a very important area of audit activity today, and the activation and development of this function are of great importance.
For the stated reasons, top audit consulting firms in India help the business through their expertise and try to make some evaluations about the company’s condition and its goals. For example, they can advise on what important things is a company missing, what needs to be done to improve the situation, and what kind of benefits this step can bring.
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