In every group of people, non -profit organization, football team, social club or, of course, company, there must be internal control, but also, critical analysis of what is being done well and what not, What provides value and what remains. An observation will always be positive -objectively, independent and critical -, with the aim of knowing first hand and with a truth that is expected, the state of behaviors, processes and procedures -according to apply. In the environment Management , this internal control procedure is known as internal audit.
Internal audit is an independent and objective activity of assurance and consultation, conceived to add value and improve the operations of an organization. It helps an organization to meet its objectives, as it provides a systematic and disciplined approach with which to evaluate and improve the effectiveness of risk management, control and government (The Institute of Internal Audits) processes.
The main objectives to be achieved by internal auditors are:
- Analyze the internal control of the company, both in its financial and operational aspect in order to ensure the representativeness of the information based on objectively accepted principles and an adequate operational management control of the organization.
- Analyze the safety of the company’s assets, considering its possible not correct use.
- Analyze the reliability of the organization’s information system in order to determine the correct obtaining and representativeness of the information used in the business operation.
- Ensure compliance, by the organizational structure, of the policies dictated by the management.
- Analyze the rationalization of organizational criteria, valuing their possible best use and making the appropriate recommendations.
the functions of the internal audit
To achieve the previous objectives, internal auditors must synthetically carry out the following functions:
- Act independent of criteria and action regarding the remaining bodies of the company for the fulfillment of its objectives and in the performance of its functions.
- Develop your mission in any area or functional activity in accordance with an annual audit program previously established and approved, or by express instructions of the management.
- Access freely and at any time to the records, archives and documents of the company, and in general to all sources of information in the organization.
- Receive all those standards and instructions written to the general functioning of the company that are prepared by the different departments responsible for the topic and whose compliance is obliged.
- Collaborate with the different organs of the company in the implementation of the systems and procedures aimed at obtaining greater efficacy of 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 to achieve the audit objectives entrusted by the management.
- Recover adequate levels of management, suggestions and observations for the preparation of the Annual Audit Program.
Internal audits are a great value within organizations, which charge greater value, if, in the current context of criminal responsibility of administrators and managers, established by the current Criminal Code, since the law provides for a Exemption of responsibility if the necessary surveillance and control measures have been adopted to prevent possible crimes in which the company may incur its characteristics. This procedure is the compliance, and in next entries we will address it in detail.
Does the company work? Doesn’t the company work? In either case, plant yourself an internal audit. It is the best way to know in detail what marks your activity. If something works, keep it, and if not, change it. There are no good or bad conclusions in an internal audit: there is only future benefit.
In Verum we have performed internal audit functions in many organizations, and if there is something that we believe should characterize them is trust. And the best way to obtain it is through the results, which in our case, precede us: firstname.lastname@example.org
Moneyball. Bennet, Miller. (2011) – Imp Awards