The role of internal audit cannot be ignored; hence, its importance and relevance should never be underestimated. As a matter of fact, it is one of the most important aspects of the operations of a particular organization. In fact, every organization should carry out internal audit at least once in every three years, in order to monitor its compliance with relevant and applicable laws and regulations as well as to identify the root causes for the increasing fraud in the organization.
Auditing of an organization’s operations and activities is the first step towards identifying and eliminating the frauds in the organization. Thus, the importance of this activity cannot be underestimated and should not be taken lightly. This is the most effective way of eliminating fraudulent activities from the organization, as it can expose the real nature of the fraud and its root cause.
It is also necessary for an organization to undertake an auditing of its operations and activities, especially when it comes to maintaining the integrity of the books and records. If a fraudulent activity has occurred, then it is better to identify and eliminate the cause for which the activity has occurred. However, if the cause for the activity did not exist then it is advisable to find out the reasons behind it and rectify these reasons before it happens again.
Internal audit can help an organization in discovering and eliminating any flaws in its internal control system, in addition to uncovering frauds in the organization. The results of such audits can help an organization in improving its internal controls system to increase the effectiveness and reliability in the overall performance of the organization.
In order to carry out an internal audit effectively, it is important for an organization to have the right resources and the right people. In order to carry out an efficient internal audit, it is essential for the organization to have both a skilled auditors and auditors. and analysts. These two specialized individuals must be very talented in their respective fields so that they can make accurate conclusions without any ambiguity in the process.
The scope of internal audit should be as broad as possible so that it can cover all the areas that are related to the internal operations of the organization and the procedures used to manage and control the financial transactions and the internal accounting matters. A comprehensive internal audit should involve all areas of the organization, even those areas that are not directly related to the internal functioning. This will make it easier for the auditors to arrive at the right conclusion on the basis of the evidences gathered.
The scope of internal audit should be as comprehensive as possible so that it can cover all the areas that are related to the internal operations of the organization and the procedures used to manage and control the financial transactions and the internal accounting matters. A comprehensive internal audit should involve all the areas of the organization, even those areas that are not directly related to the internal functioning.