Advantages And Disadvantages Of Internal Audit

EXECUTIVE DETAILS:

1- Ms. Tanu Garg (M.D.)

2- Mr. Vinay Kumar Gupta (M.D.)

3- Mr. BOBBY (M.D.)

4- Mr. Bhavani Shanker (H.R. Manager)

5- Mr. P.K. Singhal (Head of Audit Department)

6- Mr. Sanjeev Sharma (Head of accounts Department)

INTRODUCTION:-

Common definition of audit is concerned with evaluating a person, company system, process, enterprise, project etc.It refers to audit of accounting, internal auditing and government auditing but also used in project management, quality management, water management and energy conservation. Auditing can be explained as a systematic and independent examination of data, statements, operations, records and overall performance of the organozation for a specific purpose.In every auditing function

1- INTERNAL AUDIT.

2. EXTERNAL AUDIT.

1-INTERNAL AUDIT: It is an objective assurance,independent and consulting activity made to add value and to improve operations and processes of an orgazation.Internal Auditing helps any organization in achieving its objectives and goals by designing a disciplined and systematic approach to evaluate and to increase the efficiency and effectiveness of risk management,governance processes and control.

According to institute of internal auditor,Internal Audit has defined as below: Internal auditing is a kind of control, which is done to measure and evaluate the effectiveness of other kind of control of an organization. Internal auditing works primarily with financial and accounting matters related to the organizational operations but it also deal with matters of an operating nature."

Internal auditing is an crucial element to improve an organization 's performance, management control,risk management by providing suggestion and recommendations based on analyses and testing of data, business processes and process with commitment to accountability and integrity.Internal audit helps in providing value to governing bodies and senior management what they

In Internal Auditing, An organization has an its own system and based on self assessment.Many professionals are hired by the organization called Internal Auditors to perform the activities related to the internal audit department.The scope of internal audit in an organization is broader and it may involves matters such as an organization 's governance, risk management and management controls over effectiveness and efficiency of operations the credibility of financial and management reporting and compliance related with regulations and laws. Internal audit also involve conducting proactive fraud audits to identify possible fraudulent activities which are existing in fraud investigations under the guidance of fraud investigation professionals, and to conduct post investigation fraud audits for identifying control-breakdowns and to prevent financial losses. Internal audit is an audit done by an internal auditor who is appointed by the management to highlight the weak areas of the organizations. Internal Auditing is concerned with checking and evaluation of various organizational operations, activities and to provide a helping hand for the management in ordernton complete their responsibilities effectively and efficiently.Internal auditor audits the financial accounts and other relevant recordsandstatements daily,ataprederminedperiodor to achieve the following