Importance of Internal Audit to a Company
Internal auditors are viewed more like the company’s watchdog. Their tasks are diverse and generally entail objectively examining the accounting records and financial documents of a company. They also engage in reviewing operating procedures, risk management functions, regulatory compliance, security processes, and such within the various departments. To ensure that your internal controls are effective and the financial processes flowing as required; it’s advisable that you consider engaging a reputable audit firm in Singapore for internal audit services.
Having an internal auditor can be of benefit to an organization in diverse ways. Internal auditors are also tasked with the responsibility of looking for discrepancies that lie between the operational processes and what the processes are designed for. Once such discrepancies are identified, they are expected to advice the senior management on the processes that should be implemented. The work of an internal auditor helps with ensuring operational efficiency and financial reliability and also acts as a safeguard to the assets.
Here are some of the reasons why internal audit is important;
The objective of internal auditor is to engage in consulting activities that are designed to add value and also improve company’s operations. Such a move can help a company to realize their strategic objectives by undertaking a systematic and disciplined approach towards evaluating and improving governance processes, risk control and management. Engaging an audit firm in Singapore such as Onestop for such services helps with ensuring that innovative measures are put in place to ensure that the financial records are accurate and beyond reproach and that has the potential of increasing productivity.
Enhances Confidence in Stakeholders
It’s the duty of the internal auditor to report to the executive management that important risks have been effectively evaluated and necessary improvements taken into consideration. Such a move helps with enhancing the stakeholder’s confidence as they get to develop the confidence that the executive management is doing their work on behalf of the stakeholders effectively.
Detection of Fraud
Instead of waiting until the external auditors perform their annual audit; having an internal auditor can greatly help with detection of fraud and that makes it possible for the necessary measures to be taken early enough. Regular internal audits help with assessing company’s controls so as to uncover any evidence of waste, abuse or fraud.
Internal audit combines both assurance and consulting tasks. Assurance entails informing the management on how well the processes and systems are designed and how it helps with ensuring company’s goals are kept on track. Consulting entails advising the management on how the systems can be improved; the processes to be followed and if it’s necessary.
Good Corporate Governance
Internal audits help with the evaluation of a company’s internal controls including the accounting processes and corporate governance. Working with a reputable audit firm in Singapore for such tasks helps with ensuring compliance that the laws and regulations are observed. It also helps with ensuring that timely and accurate financial reporting is observed.
Working with a reputable auditor in Singapore for internal audit services helps with ensuring that operational efficiency is maintained by identification of problems and making the necessary correction before an external audit is undertaken.
Originally published by onestop-audit.com