Internal audit is an independent, objective assurance and consulting activity designed to add value and improve organization’s operations. Purpose and Scope of Internal Audit is that, it helps an organization to accomplish its objective by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance process.
Internal audit activity can play an important role and support the BOD and Management, in fulfilling the essential component of their governance mechanisms. The internal auditor furnishes analysis, evaluations, recommendations, counsel and information concerning revenues, and improving profits.
Purpose And Scope Of Internal Audit
Internal audit functionis an independent evaluation function to examine and evaluate the activity of the organization. Purpose of internal audit is to assist members of the organization, especially management and the Board of Directors. The information furnished to each may differ in format and detail, depending upon their requirements, request and the nature of the assignments.
In achieving its objectives, the scope of internal audit activity should be appropriately broad to meet the need of management. It should include,
Determining whether the existing system of controls is in harmony with the structure of the organization.
Reviewing each control and analysis in terms of costs and benefits.
Reviewing the consistency and honesty of financial and operating information and the means used to identify measures, classify and report such information.
Reviewing the means of maintenance of assets and as appropriate, verify the existence of such assets. The objective of the management is to ensure that assets are reasonably protected against loss and that they are properly managed and accounted for. The maintenance of assets should not be restricted to mere pilferage but physical threats like fire, water, electricity, etc.
United auditing an auditing division of Emirates Chartered Accountants Group used to get many enquiries from different industries, to provide them the internal audit services. If you need any assistance from united auditing please feel free to contact us in info @emiratesca.com