What are the main extracts of Internal Audit?

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Main extracts of Internal Audit are as under:

• Give Report to express expert opinion on given subject matter
• Systematic checking and verification of records
• Make sure that GAAP are followed.
• Reports made are in accordance with IFRS.
• Analysis of reports and other details.
• Time bound i.e. to finish audit in given time frame.
• Investigation of fraud in certain cases.
• Feasibility report in certain cases.
• Audit should be fare and natural without any internal or external forces.

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Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing is a catalyst for improving an organization's governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to perform the internal auditing activity.

Internal auditors are not responsible for the execution of company activities; they advise management and the Board of Directors (or similar oversight body) regarding how to better execute their responsibilities. As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds.

Internal auditing activity is primarily directed at evaluating internal control. Under the COSO Framework, internal control is broadly defined as a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of the following core objectives for which all businesses strive:

·        Effectiveness and efficiency of operations.

·        Reliability of financial and management reporting.

·        Compliance with laws and regulations.

·        Safeguarding of Assets

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The scope and objectives of internal audit vary widely. Normally however, internal audit operates in one or more of the following broad areas.

1. Review of the accounting and internal control systems 

2. Examination of financial and operating information.

3. Review of economy, efficiency and effectiveness 

4. Review  of compliance and

5 special investigations 

The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively.

Reports to The board and senior management who are within the organisations governance structure.

The approved internal audit plan is biased towards risk and therefore the Board will need to integrate these results with other sources of assurance when making a rounded assessment of control for the purposes of the Annual Governance Statement.

1. Identify emerging risks and areas that most organizations are currently focused on

2. Develop practical audit ideas for these emerging risks

3. Consider the questions that chief audit executives should be asking to further qualify their relevance 

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