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What are the reasons for establishing an internal audit function?

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Question added by Abdul Khalique , Finance Manager , Value Real Estate & Construction
Date Posted: 2016/03/08
Bhup Narayan Jha
by Bhup Narayan Jha , Administrative Personnel , Al Barkah Investment Holding LLC, Abudhabi

Internal audits in any organization are carried with motive to ensure that each works are carried up to the specified standard & company's norms directed towards to the set vision and mission.

How ever we can point out some vital point as below:

1. To ensure the work productivity and efficiency meeting our set standard.

2. To find the discrepancies reason between desired  result & Actual Result.

3. To make sure that all the data and information are up to 100% accuracy level.

4. Its proactive step to get success in External Audit & minimize critical review from them on the company working standard & Data/Information Management.

5. To discourage unethical business & personal activities to maintain professional ethics.

6. To provide recommendation for improved  Technics/ methods in working procedure to enhance productivity, accuracy.

7. To find out the reason of leakage & misuse of property and recommend the solution to avoid such leakage in future.

 

Apart from these, the matter is of huge discussion. The success of an organization is very much rely upon its internal sources, the mission only can be targeted & achieved if there is optimum  contribution from all the internal aspect, which to be monitored regularly. Thus we need a strong & fair audit team in our team (Organization).

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