How to Assess Your Business Successfully

Today the concept of "internal audit" has become widespread in business. Many large enterprises and companies prefer to create their internal audit services and departments, training their employees.

When deciding to conduct an internal audit, it is necessary to determine its subordination to the audit committee of the board of directors or directly to the board of directors of the company.

In the latter option, the level of independence of internal auditors from executive management is higher, which allows more efficient use of the potential of the internal audit system.

In the event that this option is not feasible, it is necessary to subordinate the internal audit unit to the senior official of the enterprise.

At the same time, attention should be paid to the tasks that the internal audit system solves. If the primary task is aimed at implementing control and auditing activities, then you need to choose subordination to the top executive management of the enterprise.

Internal audit is the most effective tool for identifying opportunities to improve the efficiency of activities, allowing you to obtain the information necessary to achieve the goals and solve the problems facing the subject in the most effective way

It should be noted that an effective internal audit can reduce the costs of an enterprise for external audit (an external auditor can use the results of an internal audit, this will reduce the volume of audit procedures of an external auditor) but cannot eliminate the need for an external audit for an enterprise.

Thus, internal audit is an independent and objective advisory activity that provides concrete results aimed at increasing the value and improving the company's performance.

Many believe that internal audit determines the strengths and weaknesses of a company, is the lifeblood of a company and contains the potential that enables a company to function and survive in a market environment.

Summing up, we can say that the role of internal audit is reduced to the fact that it:

• Assess the effectiveness of management.
• Contributes to the improvement of the internal control system by developing recommendations for improvement.
• Is an objective source of information; aimed at improving the management system.
• Provides assurances that the internal control system is effective, employees comply with the rules and procedures, management receives reliable information, assets are protected, risks are assessed and measures to manage them are determined, the tasks facing the organization are completed.
• Is focused on solving problems.
• Is focused on providing advice.

In general, it can be noted that internal audit is aimed at improving the efficiency of the company as a whole. The presence of top audit firms in Delhi increases the confidence of stakeholders, increases their confidence in the rational use of resources by the company, safeguarding assets, optimizing business risks, and transparency of the company.

Modern technology makes it relatively easy to interpret data and see a picture of what is happening here and now. Internal audit cannot only see but also assess how well the processes are working, calculate deviations.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Aman Aggarwal

AKGVG & Associates