Identify Certain Points of Improvement and Risks in Your Business by Conducting Internal Audit

Any company aims to ensure, according to its means, the achievement of the objectives it has set. To do this, it must set up an Internal Control system in consultation with internal audit service providers in Delhi allowing it to properly control its activities and comply with instructions at all levels.

However, many do not give enough importance to Internal Control within the company or do not know its exact definition, reducing it to a simple function when it is a whole set of provisions.

The incessant activity that exists in companies makes it necessary to constantly supervise, through an internal audit carried out by?Internal Audit Consulting Firms ?the different operations of the financial, accounting, and administrative areas that are carried out day after day to sustain business’ profitability and productivity.

There are three types of internal auditing approaches, used in combination or separately:

Administrative audit: reviews and evaluates the methods, systems, and procedures that are carried out throughout the administrative process.

Operational audit: evaluates the efficiency of human, material, and financial resources.

Financial audit: the effectiveness of administrative and operational audits allows the review of financial information to yield positive and scalable results.

Now, what specific benefits does your company get from doing an internal audit?

Optimize processes in the administrative, financial, and accounting areas.

Performing an internal audit allows plans, company policies, internal control and processes to be carried out satisfactorily. If there were any difficulties or problems in these processes, they would be revealed to be resolved later.

Financially protects companies.

It protects companies from fraud and unnecessary expenses that may arise. In this way, the audit anticipates, as if it were a danger alert, the financial risks that could come from poorly executed projects or poorly carried out actions, providing viable guidelines to counteract their effects.

Supervise and control the performance of collaborators.

Supervise the individual tasks of each collaborator, so that they are carried out promptly. Internal audit is a part of the correct functioning of a company, which, monitors the performance of the collaborators in the different tasks of each area, since the level of productivity that they achieve also depends on it.

It allows evaluating the economy through the resources used.

And finally, among the main advantages of carrying out an internal audit, is that of being able to evaluate the economy of a company, according to the use that is being made of the resources it has month by month, year by year.

Internal auditing is an activity that cannot be dispensed with, due to the benefits it can bring to a company’s administrators, by preventing inconsistencies in procedures, policies, and controls, allowing them to optimize the protection of their business assets, operations, and, consequently, its development, growth and financial results.

The auditor’s objective is therefore to verify, control and analyze the company’s accounts with an expert’s eye. The importance of carrying out an internal audit is therefore to have an overall idea of the company to anticipate possible problems, to know its weaknesses, and above all to know its ability to solve them.

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 & Associate