Internal audit is a reassuring activity that is performed in order to directly evaluate and increase productivity, efficiency and effectiveness, observe the organization’s internal controls, comply with laws and regulations and legal requirements, and comply with accounting standards in the company’s internal systems, etc. Internal accounting can be done in two ways. In the first case, the company creates a special department for internal audit and hires specialized staff. In the second case, the company outsources its needs and entrusts the internal audit to an individual or an independent company. accounting firm
Thus we can say that internal audit actually states the basic purpose, nature and scope of internal audit. Internal auditing is an independent, reassuring, and consulting activity designed to add value and improve an organization’s operations. Internal auditing helps the organization achieve its goals by providing a systematic and methodical approach to evaluating and improving the effectiveness of governance, risk management, and control processes. Financial and accounting services
Explain the “internal auditor” as a financial and accounting person of the company who has access to all financial and non-financial documents and has the opportunity to communicate with senior managers of the organization.
Internal audit in order to control financial resources and its deviations should be done in the organization to prevent financial problems and gross mistakes and losses. In fact, it is responsible for checking compliance with legal requirements in the organization and if these requirements are met. If they are not done or are incomplete, discover them and try to fix it.
What is the difference between internal audit and external audit?
The difference between these two audits can be stated that the internal auditor is from within the organization, but the external auditor is sent to the company from the Financial Services and Auditing Institute. External audit is required by law and failure to do so is considered a legal violation, but in the case of internal auditor there is no legal obligation and is performed by the management of the organization to investigate deviations and eliminate them.