One of the tasks of Internal Audit Firms in India is to provide added value to an organization. This added value arises, among other things, from bringing management information related to the risks to the organization that is new, interesting, and relevant.
Sometimes an external, objective body like Top Audit Companies in India is needed to put the development needs and opportunities of the organization into words and clear recommendations for action. An adaptable internal auditor who is transparent enables value-added internal audit.
The purpose of this article is to concretely describe the key functions of internal audit and to highlight issues that contribute to the benefits of internal audit for the company’s management.
The role of internal audit is to provide information to the company’s management (CEO and Board of Directors) and to support management in developing operations and processes.
In addition to the assessment and assurance service, the task of internal audit may be of a purely consulting nature, in which an advisory service is provided to a client concerning a specifically identified matter.
When it comes to an internal audit, there is an image of being caught in fraud, but it is not. The original purpose is to confirm whether the business operation is being carried out properly and then to lead to further business improvement.
Generally, an internal audit must cover all business activities of the organization and must include audit work or diagnostic work for the following matters.
(1) Risk management
The internal audit department is required to contribute to the maintenance and development of the organization by contributing to the identification and evaluation of significant potential risks and the improvement of risk management and control systems.
To that end, the internal audit department must evaluate the effectiveness of the risk management system in the organization, implement strengthening of the organization’s governance, and consider and evaluate the potential risks related to the information system.
The internal audit department needs to help the organization maintain effective control measures.
Based on the results of the risk assessment, the validity and effectiveness of the control measures for the implementation of governance operations of the organization and the information system as a whole are evaluated. But it is also necessary to judge whether it is a valid evaluation standard.
(3) Governance process
The key to internal audit is to instil ethical values in the organization, ensure organizational operations management and accountability, and take appropriate action to improve governance processes concerning risk and information control.
Since internal audits are not statutory audits, the scope and content of the survey can be freely decided by the company.
Furthermore, regarding the points to be pointed out and improvement proposals, follow-up will be conducted to continuously investigate and confirm what kind of improvement and corrective measures the target department and related departments have taken.
The tasks of internal audit are very diverse, and the audit can be related to any activity of the company. CAC’s internal audit experts are happy to help the companies by implementing internal audit tasks so that they serve the company’s management in the best possible way.