Demand for internal audit is more than ever

Modern society cannot be imagined without trade. This realm of life is important to each of us, and no production can function normally without trade. Thanks to this, the distribution of goods in production and consumption is carried out. It is not surprising that more and more entrepreneurs are engaged in trade.

Effective management of a trading company is possible only in the presence of complete, accurate, objective and timely economic information. To obtain such information, it is necessary to keep records of the economic activity of the enterprise.

A trade audit is a type of audit required to use special methods, programs, and techniques.

The general purpose of the audit is to verify and confirm (or not verify) the reliability of the financial statements of the organization and to establish financial and economic operations carried out in regulatory legal acts.

In order for a company to survive the competition between companies in a globalized and rapidly changing business environment, the management should grasp various risks surrounding the company management in a timely and accurate manner and then appropriately. We must practice risk management.

Internal audit now involves the risk management practiced by management from the perspective of whether there are important risks that management has not fully grasped and whether the risks that management has grasped are properly managed.

It is expected to play a role in enhancing the risk management effect of the entire company by monitoring the results and reporting the results to the management.

In other words, retail audit companies in Delhi are expected to play a role as a management consultant in risk management for the entire company.

How to proceed with internal audit?

To proceed with internal audit, make an audit plan. In general, the number of departments in charge of internal audit is small, so we must keep in mind efficient auditing.

Therefore, it is important for internal audits to adopt the concept of risk approach and create an audit plan that focuses on controlling and checking risks that have a large impact on business activities.

In addition, when formulating an audit plan, it is necessary to consider selecting and adjusting a time that does not affect the work of the auditing department as much as possible, except in very exceptional cases where unannounced audits are required.

This is because the active cooperation of the person in charge of the department to be audited is indispensable for internal audit.

Internal audit companies in India are not usually involved in each business of the entire company, so they start by receiving an explanation from the business staff about the content and flow of the work. This is because auditing cannot be done even though the content and flow of work are not well understood.

Retail audit firms in India also read the minutes of the meeting and daily business reports to check the contents (this is called “viewing”) and observe the actual work performance of the person in charge, and visit the sites such as branches, factories, and warehouses on a regular basis.

In addition, just as an actor plays a play from beginning to end according to a script, it is called a “walk-through” to check whether controls in a business process are functioning according to a business flow chart.

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