In contrast to financial statement (external) audit, internal audit is more detailed which is aimed at identifying financial and operational risks, internal control deficiencies, non-compliances with an entity's policies or procedures and laws or regulations and governance issues.
Internal audit can be an inhouse department or external consulting firm which provide independent assurance on the operations of an entity's governance, risk management and internal control processes.
Salient benefits of an Internal Audit
Purpose of an Internal Audit is to identify an entity's financial and operational issues and to provide recommendations to improve an entity's governance, risk management and control processes by providing insights on deficiencies, non-compliances and risk evaluated & observed during the conduct of internal audit.
Activities included in Internal Audit
Internal Audit service include:
- Observe, assess and evaluate an entity's risk and controls,
- Review compliances with an entity's policies & procedures and laws & regulations, and
- Based on the identified deficiencies in internal controls, evaluated risks and observations, recommend an entity's top management the measures to improve internal processes, prepare or amend policies & procedures.
When your entity needs an Internal Audit Service
Your entity requires to execute an internal audit service in below circumstances:
- Errors and omissions have occurred.
- Work flows is expected to maintain at particular standards and controls.
- Existing controls are deficient or not being followed.
- Existence of probability of ongoing embezzlements in cash, inventory, etc.
- Compliances with entity's policies & procedures and laws & regulations is required to maintain and monitor.
- Observe relevance and effectiveness of control environment and risk management incase of business expansion, innovation, decentralization or centralization, change in regulatory requirements, or any changes in business structure.
How we stand out as an Internal Auditor
Internal Audit requires a specific skill set to analyze an entity's control environment, risk management and governance processes. Understanding this key requirement of internal audit, we have deployed a team of highly skilled and experienced internal auditors that ensure adding value to businesses of our clients.
Our team undertakes risk assessment processes that identifies areas of high, moderate and low-level concerns, to prepare a comprehensive plan of internal audit that meets dual expectations i.e. expectations of our clients to serve their purpose and expectations of our partners to add value for clients.
Our managing partner is well versed with International Standards of Internal Auditing developed by the Institute of Internal Auditors (IIA), hence we have developed internal audit routines, procedures and techniques which best suits to our clients in their business scenario and concerned circumstances urging the need of internal audit.
