We make several tickets, we introduced ourselves in the matter of the internal audit, seeking to offer a first general impression of what this type of activities consists of. We continue with our one of our purposes in communication: to skip the theoretical barriers in the context of business services.
We have defended in many occasions that it is not a better advisor or consultant who with more theoretical load speaks, but the one who possesses it and knows how to adapt it, both to the practical case that occupies it, and the client he has in front. The internal audit environment, as we have explained on occasion, is linked to the praxis business, so we can offer some more theoretical load, since it is a service of a larger draft and Services depth.
the scope of the internal audit
The scope of the internal audit covers the examination and evaluation of the adequacy and effectiveness of the internal control system of the companies and the effective fulfillment of the responsibilities assigned by them. Besides:
- It allows to review and evaluate the validity, sufficiency, quality and application of the accounting, financial and operational controls of a company promoting effective control at a profitable cost.
- Help ensure that the policies, programs and procedures established by the organization is fulfilled.
- Try to make sure that assets are properly registered and sufficiently protected from losses of all kinds.
- Try to ensure that the information used is useful for address.
- Try to evaluate the quality and effectiveness of the execution of the assigned responsibilities.
- Advisor on operational improvements within the organization.
- Help identify potential savings, duly valued, in terms of the impact they can produce on financial results.
- Review and pursue the correct and effective implementation of audit recommendations and suggestions raised by the organization.
The internal audit is exercising a management audit function, while performing operational functions, although this varies depending on each company. To give an example: sometimes we find companies in which given the size and operational complexity, the function of the internal audit undertakes all the tasks described above, and yet, on other occasions we find companies in which its department of internal audit exercises only some specific functions of all of them.
Internal Audit Objectives
Although the internal audit function has the authority and responsibility to review and issue reports and recommendations, it cannot make operational decisions. Given this, it is important to note that the objectives of the internal audit process are:
- Act regardless of action and criteria regarding the remaining organs of the company for the fulfillment of its objectives and in the performance of its functions.
- Develop its mission in any area of functional activity in accordance with an annual audit program previously established and approved, or by express instructions of the management.
- Freely access the company, and in general to all sources of information of the company.
- Receive all those rules and instructions related to the general operation of the company that are prepared and whose compliance is obliged.
- Collaborate with the different organs of the organization in the implementation of the systems and procedures aimed at obtaining greater efficacy of the company’s management practices.
- Demand compliance with the standards and instructions established by the Company and the audit recommendations that have been accepted by those responsible for its implementation.
- Request the necessary collaboration of any department of the company to be audited to achieve the audit objectives entrusted by the management.
- Recover, address, adequate suggestions and observations for the preparation of the annual audit program.
It is important to note that the internal audit helps identify improvement points and correct weaknesses in companies, so it provides undoubted value to the companies that undertake them. Talking about auditors is talking about Verum. And talking about us like to do it with you. Write any consultation of info@verumasesores.com and we will seek to offer you our knowledge and experience in it and Other fields.
deard, James. Rogue Trader. 1999
