Wednesday 10 August 2016

Things to know about Internal Audit Procedure

Why Internal Audit?

If you are wondering about internal audit procedure, the first thing you have to know is that internal auditing is for the purpose of improving the effectiveness of business transaction in the organization and your report is to the management. 
Therefore, all you will do is within the organization and unlike external audit, your calculations is based on all categories of risk and not financial risk alone.

Knowledge and neutrality is required

An internal auditor is expected to have wide knowledge of transactions and events in the organization. At the same time, auditors are expected to be sincere in their judgment even in case of strategic issues.
The strategic issues are involved because the auditor here evaluates the risks in the organization even if the auditor is not gotten outside the organization. This seems pertinent because you have to be sincere and tactical. Always, choose the top rated CPA firm which specialize in internal audit services.

The steps for Internal Audit Procedure

The internal audit procedure is organized and sensitive. Therefore, certain steps are required in other to come to a good resolution. The following paragraphs will highlight the steps.
  • Have a schedule: In other to help each of the processes to cooperate, the auditor should have a schedule so that each process will know what to them and at the particular time needed. This is because cooperation is needed at both ends. This schedule should be confirmed.

  • Review previous audits: You cannot build something on nothing and at the same time, the history of a thing contributes to the existence of that thing. Therefore, it is smart and helpful to take a look at previous audits and the recommendations from it.

  • Reviews & Activities: The next step is what is considered as fieldwork phase: Here, all the necessary reviews are carried out. It is not only about checking the financial circumstances and activities. It is also necessary that certain officials are engaged in informative conversation. It is at this stage that the risks are known and the important issues are addressed.

  • Accounting & Reports: When you are done with all necessary findings, all your results should be accounted for and reported to the necessary aspect of the organization, most especially the top management.


By the time the above is list is completed, you have a good work done and all is left is for the follow up and addressing of necessary recommendations being followed.
Additionally, good time frame is very important because the process of audit can either be the reason why something is put on hold or why some things won’t go worse.
Conclusively, internal audit procedure is all about cooperation, coordination, reviews, and reports and follows ups within the organization. The knowledge about the little information on financial auditing is always the help that is significantly needed.  

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