Identify Opportunities For Improving Business Efficiency With Internal Audit

Internal audit can become one of the most effective tools for identifying opportunities for improving business efficiency and, therefore, one of the company’s competitive advantages.

Internal audit is in vogue today, and many managers and owners would like to implement it in their companies, often not fully realizing the enormous potential that it has.

Simultaneously, furthermore, ambitious tasks are being set for internal audit, the necessity for it is increasing and, accordingly, the pressure on internal auditors is growing. In some cases, an internal audit begins to be treated as a lifesaver that can and will fix everything.?

Why internal audits attracted attention?

Internal audit, being not a new concept, attracted particular attention at the beginning of the third millennium. The growing interest in internal audit in the world is due, in our opinion, to several factors. (Read More:?From BRR To BRSR: Way Forward For Sustainability Reporting By Businesses)

Auditing services in Delhi are one of the few currently available and at the same time underestimated resources, the correct use of which can increase the efficiency of the company.

The very profession of the internal auditor is based on two fundamental qualities – independence and objectivity.

Independence in this case is an organizational concept and is largely determined by the level of subordination of the internal audit service in the company. Objectivity refers to the individual quality of an internal auditor, which is how impartial he is in his assessments and conclusions.

The purpose of an internal audit is to improve the performance of an organization. We emphasize- not to reveal violations and mistakes for subsequent organizational conclusions and punishment of the guilty, not to write a report of several tens of pages with hundreds of difficult recommendations, but to see and assess the risks, weaknesses in the organization’s work and make recommendations aimed at improving and increasing the efficiency of systems and processes.

The essence of the?audit consulting services?is to provide guarantees and consultations to customers of internal audits.

At the same time, the sphere of providing guarantees and consultations has significantly expanded in recent years and currently includes the following areas: risk management, internal control, and corporate governance.

From the opinion of line management, the largest value of internal audit is found in the ability to get advice on improving the efficiency of business processes for which line management is responsible.

Modern internal audit is capable and should perform diverse and ambitious tasks. First, it assesses the internal control system in terms of information reliability, compliance with legislation, asset safety, efficiency, and effectiveness of individual operational and structural divisions.

Secondly,?the accounting audit service?analyses and evaluates the effectiveness of the risk management system and proposes methods to reduce risks. Thirdly, assesses the compliance of the company’s corporate governance system with the principles of corporate governance.

Today there are favourable conditions for internal audit to demonstrate its broad capabilities and prove its necessity both for the owners and for the management of companies. And the owners and management of companies can have a powerful tool to improve business efficiency.

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