Internal audit

Internal audit is an important part of the internal control system of financial and other companies. Knowledge of internal processes and experience with audits is key for mastering internal audits. The main subject of an internal audit is control management, internal control system, risk management and other related issues.

Internal audits may seem to be a difficult task, but we are ready to provide world class services.

Please have a look at our internal audit references.

References

Definition of internal audit

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal audit focuses on assessment of the internal control system. This is done by assessing, analysing, and evaluating a company’s performance, and reporting it to senior management. Internal audit also provides independent assurance that an organisation's risk management, governance, and internal control processes are operating effectively.

Internal audit procedures include:

  • Defining the status of an internal audit, its approval by statutory body, supervisory body or eventually by the advisory body of the audit committee statutory body
  • Internal auditor education and clear recognition of auditory field and activities
  • Internal audit guidelines – step by step guidelines for internal auditors in all areas of operations/activities
  • Internal audits consists of:
  • The notification to relevant departments and employees about internal audit commencement
  • An assessment of legal requirements for controlled activities
  • Analyses of operations and the confirmation of provided information
  • Report of current status
  • Evaluating controls and advising managers at all levels
  • Adding managerial and relevant staff comments on the report and completion of assessment
  • Circulation of final report to statutory and supervisory body
  • Actions against gaps and deficits taken by statutory or eventually supervisory body
  • Controls of mitigating actions against gaps and deficits by the internal auditor
  • Annual report on internal audit activities (report includes comments on the acceptance or denial of the auditor’s recommendations)

Consulting and assurance activities

Internal auditors provide insight and recommendations to senior management and relevant staff regarding their compliance with internal and legal regulations. This is based on analyses and assessments of a company’s’ data and business processes. Internal auditors’ actions can prevent and avoid violation of mandatory regulations.

Summary

Internal audit is an inspection activity that involves:

  • Risk and process analysis
  • Internal regulations and guidelines
  • Step by step guidelines for internal auditors
  • Regular reports on auditory activities
  • Special audit on specific processes based on statutory body requirements
  • Consulting and assurance activities of staff and the statutory body (institution)