Internal Control and Internal Audit
Internal control system means all the policies and procedures adopted by the management of an entity to assist in achieving management’s objective of ensuring, as far as practicable, the orderly and efficient conduct of its business, including reliability to management policies, safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The internal audit function constitutes a separate component of internal control with the objective of determining whether other internal controls are well designed and properly operated.
Importance of Internal Audit for internal control system
Internal auditors play an important role in evaluating the efficiency of control systems. As an independent function reporting to the top management, Internal Audit is able to assess the Internal Control system implemented by the organizations and contribute to the ongoing effectiveness. As such internal Audit often plays an important role.
Internal audit Process Includes:
Strategic internal audit plan
The Internal audit department will in consultation with management present an annual internal audit plan to the Audit Committee for approval. The plan shall set out the recommended scope of their work in the period.
Internal Audit Planning includes:
- Determination of priorities in order to establish the most cost effective means of achieving audit objectives.
- Assist in the direction and control of audit work.
- Help ensure that attention is dedicated to practical aspects of internal audit work.
- Help ensure that work is completed in accordance with predetermined targets.
Some of the every day internal control procedure includes.
- Locking your office when step away from your desk.
- Reviewing monthly comptroller’s statements to verify transactions.
- Requiring authorization on certain documents.
- Performing reconciliation on university accounts.
Emirates Chartered Accountants Group, Dubai, UAEservesthe companies to implement proper internal control system as well as to monitor and manage such internal control system for achieving the common goals of every organization. You can contact at email@example.com and for more details visit our website www.emiratesca.com.