Article search by : Mr. Mohd Nasarudin Bin Ismail (PTKewangan)

Source : https://ms.thpanorama.com/articles/administracin-y-finanzas/auditora-interna-caractersticas-para-qu-sirve-ventajas-y-desventajas.html

 

Internal audit is the activity responsible for analyzing and evaluating the management, control and risk management processes of a company. The scope of internal audit is determined exclusively by management or the board of directors, whose auditors directly report the results obtained.

The main goal is to add value and optimize the operations of a company. To achieve this goal, the audit plan, implementing, analyzing and evaluating control actions in any department of the organization, are all perfectly framed in current legal regulations.

Internal audit is a consent procedure. While management and auditors prepare an annual plan, information on the details of the audit to be conducted must be communicated in advance to the auditee, in order to reach an agreement on the scheduled planning.

a is important to keep track of findings, warning points and recommendations, because it depends not only on the success of the audit but the scope of the goal: achieve maximum effectiveness in various operations.

Features

Scheduled date

Tentative date structuring must be done to conduct internal audits, along with company management.

They can be carried out at different times of the year, the important thing is that at the end all the processes have been carried out.

Professional environment

All internal audits must take place in an atmosphere of professionalism and respect. Findings found, whether positive or not, should be analyzed with the auditee before registering them.

 

Competent auditors

Auditors must have knowledge of the procedures for auditing and understand the process being audited. In addition, they must be objective and impartial.

They are designed

Auditing is not an improvised process. This involves a thorough investigation of the entire audited process, which is from a review of previous problems that have been presented to a checklist that will guide the act.

Legislative policy

All audits must be based on laws, standards and ethical rules.

Registration and communication of results

Close meetings with the auditee are important. In the meeting the auditor should indicate possible weaknesses and areas that need to be improved.

All information must be registered and communicated to auditees and to management, covering points of disagreement, positive areas and areas for improvement.

Instead, the auditor is responsible for ensuring that corrective action has been taken to resolve problems encountered during the audit.

What's that??

Internal audit serves several purposes in an organization, but its main purposes are:

- Helps protect company assets through asset valuation and verification.

- Evaluate the financial statements prepared by the accounting staff, to verify the efficiency of the administrative system, control errors and detect possible fraud.

- Work with management in identifying and prioritizing areas or processes that need more attention, as they are at risk.

- Test internal control instruments to identify procedural gaps in them.

- Encourage the efficient and effective use of company resources.

- Identify possible risk situations, concerns or future opportunities, provide management with professional advice on possible actions in each case.

- Suggest recommendations, new ideas or conduct special research on the company's internal accounts.

- Determine the responsibilities of employees in dealing with any situation that cannot be detected in the audit.

- Supports the management of the external auditors through audit reports, which must be performed under prescribed parameters, rules and regulations.

- Ensure compliance with laws and regulations, both internal and national and international.

Advantage

Lack of timely medications

One of its advantages is that it allows for the timely identification and removal of deficiencies, before they are detected by external audit, regulation or compliance.

It can be requested at any time

 

Although there is an audit plan, management may request at any time a general internal audit or a specific department.

Guarantee of updated accounting data

Because financial information is frequently requested for evaluation and analysis, accounting staff should work diligently on the maintenance of these records.

Eliminate the possibility of internal fraud

Organizational accounts are often audited, which minimizes the possibility of internal fraud.

Evaluate operating and control procedures

Given that information, decisions will be made to improve the effectiveness and efficiency of this procedure.

Review company policies

Because audits are an ongoing and programmed process, it is possible to follow up on newly designed policies, to assess the possibility of restructuring that

Evaluate the organization chart of the company

The report issued by the internal audit will provide an opportunity, if necessary, to make changes in the organizational structure of the company chart, taking into account that it is imperative that all staff work in accordance with excellence.

Weakness

Possibly not detecting fraud

The audit is based on the evaluation of information provided by management. It is difficult for auditors to verify every accounting data.

If this cap is changed, the final internal audit report will not be true, and the fraud committed may be overlooked.

It is not possible to standardize it

Each company has its own parameters to be evaluated in the audit. The aspect of how to measure and based on what to do, its productivity or effectiveness, will be the basis for formulating the objectives and goals followed by the company’s internal audit.

Subject

Internal audits may not disclose true and reliable information of the company. This will be attributed to several factors.

If staff feel judged, they can hide mistakes that have occurred, which, however minor, will change the outcome of the final report.

 

Another aspect is that the person responsible for conducting the internal audit can use it as a power tool, enforcing it against those responsible for releasing information.

On the other hand, if the information provided is correct but not interpreted objectively, it will lose all validity.

The final report has only internal utility

Until the data thrown in by the internal audit is valid before shareholders, banks and other entities, the company must conduct an external audit, which implies additional costs when hiring an auditor to perform it.

 

References

1. Wikipedia, ensiklopedia percuma (2018). Audit dalaman. Diambil dari: en.wikipedia.org.
2. Institut Juruaudit Dalaman Australia (2018). Apakah audit dalaman? Diambil dari: iia.org.au.
3. Kemaskini ISO (2018). Ciri-ciri Proses Audit Dalaman yang Cemerlang. Diambil dari: isoupdate.com.
4. Institut juruaudit dalaman (2018). Apakah audit dalaman? Diambil dari: iia.org.uk.
5. Raymond J. Broek (2018). Faedah audit dalaman. Penasihat cukai audit Withum. Diambil dari: withum.com.
6. Parikh Vinish (2011). Kelebihan dan Kekurangan Audit Dalam. Mari belajar kewangan. Diambil dari: letslearnfinance.com.
7. Sumber pengetahuan perniagaan (2010). Kebaikan dan keburukan audit dalaman. Diambil dari: bussinessknowledgesource.com.

 

Date of Input: 21/06/2022 | Updated: 21/06/2022 | nurmiera