Why Internal Auditing Is Becoming Increasingly Important

Internal auditing is becoming an ever more important way for companies to assess their own financial situation, and to know where to make changes in the way resources are allocated. Auditing has a very long history, but most of that history relates to auditing by an external organization. This is what needs to happen if you need to present the result of your audit to someone as a way to establish credibility. The most common reason for needing to do this is to raise finance.

The result of an internal financial audit is never going to be accepted by external organizations in the same way. The internal audit only began to be used extensively when companies realized that they were becoming too complex for their own financial health. When business managers have crucial choices to make, they need to be able to see at a glance how these choices are going to affect every other department. The larger the company, and the more complex the structure, the greater the benefit which can be derived from internal audits.

Although an internal audit will not involve some of the nervous waiting and the possible disastrous outcomes of an external audit, it is a mistake to believe that there is nothing which can cause shock or dismay. Within any company there are going to be individuals who will be potential problems, those who don't believe they are paid enough or those with a grudge. These people could well be exploiting holes in the company administrative structure. It is important to examine receipts and to make sure that all expenses are accounted for.

help with audit

The style of internal audits is now being copied to a large extent by companies performing external audits. This is because accounting firms have realized that concentrating on the internal procedures of a company is often the best way of uncovering any irregularity. Where there is a problem with something within a company's operating system, an internal financial audit has a good chance of uncovering it. One of the reasons is that it allows patterns to emerge. Once you can see clear patterns, you can quickly spot anything untoward or out of the ordinary.

One of the great problems with internal auditing is the possibility of collusion between the staff who are doing the auditing and anyone who is misusing the system. Although the possibility may be remote, it is quite feasible to assume that within a small company one of the friends of a wrongdoer could be appointed to be one of the auditors. This is why management needs to take a hands on role and make sure that they are able to understand an oversee the audit. This is happening more often as managers realize the importance of internal auditing.

audit information

 

 



Surviving an IRS Tax Audit - Click Here



Audit Information News:

 

Cogta to aid poor performing municipalities - IMIESA

IMIESA

Cogta to aid poor performing municipalities
IMIESA
According to Cogta Minister Des Van Rooyen the department has a Back to Basics Programme as an overall framework and it is working with the Auditor General's office, National Treasury, provincial Cooperative Governance and provincial Treasury .

..


Global Audit Software Industry report indicates Industrial Forecast, Growth Rate & Market Share 2022 - MilTech

Global Audit Software Industry report indicates Industrial Forecast, Growth Rate & Market Share 2022
MilTech
The report firstly introduced the Audit Software Market basics: definitions, classifications, applications and market overview; product specifications; manufacturing processes; cost structures, raw materials and so on. Then it analyzed the world's main .

and more »
..


Global Audit Software Industry report indicates Industrial Forecast, Growth Rate & Market Share 2022 - satPRnews (press release)

Global Audit Software Industry report indicates Industrial Forecast, Growth Rate & Market Share 2022
satPRnews (press release)
The report firstly introduced the Audit Software Market basics: definitions, classifications, applications and market overview; product specifications; manufacturing processes; cost structures, raw materials and so on. Then it analyzed the world's main .

and more »
..


Building Science & Energy Auditing Fundamentals - Buildings (press release) (blog)

Buildings (press release) (blog)

Building Science & Energy Auditing Fundamentals
Buildings (press release) (blog)
This 2-hour course provides a comprehensive overview of residential building system basics and energy auditing principles. The program begins with an introduction to the fundamental energy and science concepts that shape the performance and analysis of .

..


Tax Software: The Basics Work, but Peace of Mind Costs Extra - New York Times

New York Times

Tax Software: The Basics Work, but Peace of Mind Costs Extra
New York Times
And TaxAct coaxed me with its Protection Plus audit assistance. These add-ons, of course, cost extra. Maybe the tax software companies are trying to distinguish themselves with something besides their return-preparation programs EUR” because, though the .

and more »
..


This RSS feed URL is deprecated
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news..


GP opening hours are fuelling A&E pressures, NAO report suggests - Telegraph.co.uk

Telegraph.co.uk

GP opening hours are fuelling A&E pressures, NAO report suggests
Telegraph.co.uk
GPs failing to open during normal office hours are fuelling Britain's Accident & Emergency crisis, a damning report by the National Audit Office suggests. MPs urged practices to EURœget the basics rightEUR as the study found almost half are not open full .

and more »
..

Billions wasted by local governments across SA - Independent Online

Independent Online

Billions wasted by local governments across SA
Independent Online
And the problems are the same: unskilled municipal officials and mayors; failure to ensure that the basics - including budgeting, cost-management and adhering to the prescribed tender processes -are done correctly; as well as a lack of accountability .

and more »
..


 

share