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Audit is a set of principles, standards, rules and methods by which a systematic audit of the internal control systems and data recorded in the books, records and financial statements of the project can be performed with a view to expressing an impartial technical opinion in the expression of the final financial statements on the outcome of the project's business profit or loss and its financial position At the end of a specified period.
Internal control in accounting and auditing, is a process to ensure that the objectives of the enterprise are effectively and efficiently achieved and the issuance of reliable financial reports, compliance with laws, regulations and policies. Internal control is a broad concept, encompassing everything that controls the potential risks of the organization
The audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team based on International Standard or company Quality Manual. It is identifying that Quality system all are in as per standard or not. If systems are not in place there is a chance for correction after the Audit. Therefore Audit is a Continual Improvement Tool.
Internal controls are policies and procedures put in place to ensure the continued reliability of accounting systems. Accuracy and reliability are paramount in the accounting world. Without accurate accounting records, managers cannot make fully informed financial decisions, and financial reports can contain errors. Internal control procedures in accounting can be broken into many categories, each designed to prevent fraud and identify errors before they become problems. It is the process which is Controlling Internal System improvement.
The term “inspection” generally refers to the activity of checking products, whereas “audit” applies to analyzing manufacturing processes and organizations. The quality inspector usually follows a pre-established checklist that is based on the product specifications. Inspected products can be the components used for production, semi-finished goods, or (most often) finished goods before shipment to a customer.
My simple understanding on these three are: 1) audit is general checking by client or assurance heads the status of site works, documentations, safety to the project requirements and standard. Other clients give grades to contractors. 2) internal control (by staffs) is maintaining the site works, safety requirements or documentation to comply with the project requirements and standard. 3) inspection (both staff & client representative) is mainly checking the schedule portion of the works with the aid of drawings, checklists and testings.
inspection is the process of checking the product/sevice againest certain specifications.
internal control is the process of products internal ispection performed by the organization to enssure that most defects are detected internally.
Audit: is the process of checking to assure that the defined processes are performed as planned inorder to meet customer needs.
for example: QC department is responsible for internal control
QC tech. is responsible for performing product inspection.
auditor shall check that QC processes are good enough for product inspection, he may also audit the process of inspection.
An audit is to verify the quality system implementation effectiveness while the inspection is evaluation implementation to verify the product in compliance quality standard criteria and internal control is regulating the system implementation.
To carry out its mission, it examines all the documents that can enrich the analysis and the verification of admissibility. He also interviews the staff in order to make a diagnosis on the functioning of the agency or department concerned. Counselor and organizer More than just an observer, this professional is above all an advisor and an organizer. It carries out a strategic analysis of the results and the profitability of the agency. At the end of this audit, he draws up an inspection report recommending solutions, in order to correct any errors. It can also participate in the implementation of administrative reforms. It contributes to a better functioning of the banking network. Required Skills Rigor and versatility Experience and versatility are required to inspect the bank to fulfill its mission: it is necessary to have a good level in finance, accounting and risk analysis. For the final report, analytical skills, synthesis and editorial skills are also required. Adaptability and Diplomacy Navigating between several inspection and execution sites in the face of a wide variety of interlocutors, an inspector must demonstrate great adaptability. In addition, your control missions can lead him to discover errors. His visits can therefore be seen with apprehension by the staff he meets. To deal with this bad perception, critical spirit, sense of reporting and diplomacy are de rigueur in the profession. Always learning The inspector is subjected to an intensive working rhythm. Alongside hours of inspection, he is in quasi-permanent training on the banking and costume trades of the stages of management training or oral communication. The ability to manage stress and the ability to acquire new skills is therefore welcome.
Audit : Might be Internal Audit (With in the oragnization)
Internal Audit : Happeaned always with inthe organization with the half yearly frequency.
Inspector: Might be QC doing analysis of the samples.
Inspector :Might be QA inspecting assurance of the Quality.
While the Internal Audit function is performed by internal auditors, Internal Control is the responsibility of operational management functions. Another point of contrast is frequency. ... Some risk experts even say that Internal Control is a part of a company's day-to-day management and administration
Audit & Internal Audit:The process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team. It is an important part of organization's quality management system and is a key element in the ISO quality system standard, ISO 9001-2008
Inspection:The term “inspection” generally refers to the activity of checking products. The quality inspector usually follows a pre-established checklist that is based on the product specifications. Inspected products can be the components used for production, semi-finished goods, or (most often) finished goods before shipment to a customer.
Audit is basically a quality tool to judge the effectiveness of the system in place & find scope for improvement wherever possible.
Internal control is part of the management system as a whole to see that all the requirements are met as per the scope of manufacture .It is more of a technocommercial affair.
Inspection is done basically to verify that the item is as per the defined specifications.
