In addition to control tasks, internal auditors can perform economic diagnostics, develop a financial strategy, conduct marketing research, and management consulting.
Internal audit is an independent study and assessment of all aspects of an organization’s activities: improving the efficiency of the internal control system, as well as the risk management system and the corporate governance system as a whole.
The purpose of an internal audit is to help enterprise managers effectively fulfil their assigned responsibilities.
Auditing services in Delhi provide enterprise managers with: an independent assessment of events; event results analysis data; tips and tricks; information related to various functions and processes.
Internal audit is systematically carried out to ensure: reliability of financial and accounting information; compliance with policies, procedures, instructions, current legislation; safety of the company’s assets; economical and efficient use of enterprise resources; fulfilment of the goals and objectives of the enterprise.
Rapid changes in the external environment, high competition, growth in the size of the enterprise, increasing complexity of management processes.
All these factors lead to the fact that it is increasingly difficult for the board of directors, management, and external auditors to receive reliable and timely information about possible risks and the state of internal control in the company.
Auditing and taxation services in India are necessary, as the owners and management of the company need to know the real state of affairs in the company.
Internal audit information is necessary to analyse and reduce the level of risks arising from constant and rapid changes in the external environment; the presence of internal audit serves as a positive signal for potential lenders and investors, increasing the investment attractiveness of the company.
The objectivity of internal audit is associated with the maximum independence of the auditor from everyone in their conclusions. Making them, he must rely on his knowledge and experience, must argue his assessments, simply and easily expressing his position
The need for an internal audit is especially felt when the company attracts foreign investment. In such a case, the public borrowing company must submit annual reports containing the report of the external auditor.
It includes an opinion on management’s activities, compliance with financial reporting procedures, the effectiveness of the internal control service, etc. Internal audit objectives may vary depending on the objectives of the organization, its size and structure, and management requirements.
Often, internal auditors are asked to precisely monitor the risks associated with the launch of large-scale corporate programs, the signing of large contracts and transactions. And globally – to help improve the overall performance of the company.
Also, internal audit often faces various difficulties within the company. The main one is the lack of understanding of the work of the internal auditor by the management or the owner. And accordingly- it’s inappropriate to use.
For example, when the internal audit service is used as a mini-punitive body in the management system. Although this is not its task, despite the difficulties, an internal audit is needed by any organization, both budget, and commercial.
It helps to build a risk management system, timely identify shortcomings in the operation of the enterprise and improve the efficiency of all its activities.
The objectives of internal audit may change, but it will always focus on one thing- to reduce the likelihood of financial loss and bankruptcy. Do not forget that internal audits will be systematic, strictly documented, and will be able to perform its tasks in the company only when it is carried out by professionals with a sufficient level of knowledge and practical experience.
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.
CA Aman Aggarwal
AKGVG & Associates