ADVANTAGES OF INTERNAL AUDIT FUNCTIONS TO A BUSINESS

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Category: Financial Auditing
  • The IA function reinforces the application of ICS and thus enables the company to run in an orderly manner.
  • The presence of this function acts as a deterrent measure to errors and frauds through, for instance, the maintenance of ICS and boosting of accounting staff morale.
  • It safeguards the assets against misuse. Using the ICS and periodic verification of assets.
  • It assists the company to achieve its objective through adherence to laid down policies and in particular through the use of constant reviews of budgets and forecasts. This will assist in the decision making process so enhance efficiency.
  • The department assists the management in implementation of policies through reporting on the degree of adherence to laid down policies and the nature of any deviation there from.
  • The IA will assist the external auditor in highlighting areas with weak ICS. This minimises audit time that would have been necessary under normal circumstances to complete the external audit task.
  • The department acts as a preventive measure against errors and frauds through periodic comparison of budgets and actual situations investigating the variance, routine and surprise checks on sensitive assets, also using responses from third parties as independent confirmation of company accounts.