What is an internal audit?

internal audit analyzes the activities, processes and procedures of the company. The audit's goal is often to improve the productivity of the company and increase its income. Unlike the traditional audit carried out by the investigative team that only seeks to detect possible legal or ethical offenses, an internal audit is carried out to provide constructive criticism to improve efficiency and ensure that established internal and external regulations and procedures are implemented. This period is often considered a time when many of the most successful businesses have been launched. This boom has created a demand for company management strategies. There was a need for analysis of these strategies and the concept of internal audit was created.

Since leadership is usually responsible for internal control, managers are often the goal of this type of audit. In order for internal audit to be fairly and fairly analyzed by employees and management of society, it usually requires people who carried out it are independent evaluators. Third -party experts JThey are often hired to perform an audit to ensure neutrality. The system draws attention to organizational deficiencies and suggests feasible solutions. Although it evaluates the specifics of the company's operations, audit conclusions may contain general instructions suitable for many business situations, along with recommendations specific to the company.

Audit employees are considered and evaluated by many factors, including compliance with regulations and laws, risk management and asset protection. The reliability and stability of financial reporting and the efficiency of operations are also closles. The audit normally checks compliance with the company's own principles and procedures.

The normal project of the internal audit initially defines the scope and purpose of the exercise. The audit persons then discuss the nature of business and its goals with management. This may include control of documents and discussions with different employees.

after a clearly defined company profile withThe Audit focuses on what is perceived as problems or high -risk factors. These areas are examined to see if they are real sources of problems. Possible solutions are presented to control for control. If they are approved and implemented, the internal audit is closed. At this point, the date for subsequent inspection is generally set to determine whether the implemented improvements have been successful.