Why Need Internal Auditing Your Business?
Table of Contents
Why Need Internal Auditing Your Business? Despite its roles in both small and large organizations, internal audit is a less-rarefied process than you might think. Notwithstanding, it helps organizations accomplish its objectives by bringing systematic, disciplined approach to evaluate its operations. Again, it improves organisation’s effectiveness of risk management, control, and governance processes.
Why Need Internal Auditing Your Business?
Why is internal auditor important to organizations? While answering these questions on this post, we give you reasons why internal audit is required in your business, advantages of internal audit, objectives, scope of internal audit and roles of internal auditor. This topic become necessary as we find out that many business men/women don’t know the need for Internal auditing their businesses nor installing good internal control system. Here, we offer you opportunity of our services necessary for your business survival and growth. This’s one reason for many business failures. Again, Why Need Internal Auditing Your Business?
The role of internal audit centres on providing independent assurance that organisation’s risk management, governance and internal control processes re operating effectively. This role is usually handled by professionals whether in-house or outsourced. In fact, we have professional duty to provide unbiased and objective view of the business operations.
Why Need Internal Auditing Your Business?
The External Auditor VS Internal Auditor:
Internal auditor will examine issues related to company business practices and risks, while external auditor examines financial records and issues opinion regarding the financial statements of the company. Internal audit as organisational in-built auditing process re conducted throughout the year, while external auditors conduct a single annual audit.
Why Need Internal Auditing Your Business?
In-house in-built Internal Auditors:
This’s internal audit system that has in place in-house dedicated staff for this purpose. When considering resourcing internal audit activity, one pertinent questions is, whether in-house or outsourced personnel, best provides required internal control.
Out-Sourced Internal Auditors:
This uses internal “guest auditors”. Actually, management decides whether in-house or out-sourced guest auditors best satisfies its desire for proper internal control.
The Auditing Firm:
Complete Full Marks Consultants Limited (CFMC Limited), the owners of this website, is an Accounting firm incorporated in Nigeria. Its services include accounting and auditing services, tax management and business management consultancy services. If you contact us, as your external /internal control auditor, you will enjoy all these benefits enumerated on this post. As consultants, we do those things you can’t do for yourself, may be due to lack of personnel or professionalism.
Why Need Internal Auditing Your Business?
This’s our concern in this write-up. Buttressing this re; What is the main purpose of an audit? Why auditing is important in business? Let’s go through now.
(1) Firstly, most sole proprietors get involved in their daily business activities. But this is not so for those with several branches and many staff. Anyone whose business has a number of staff, functions, office locations or technical systems that s/he is not personally and solely operating may run the risk of errors or irregularities occurring in their business. These organisations need good internal auditing/control.
(2) Secondly, as indicated above, it’s desirable to check and deter fraud by carrying out a regular audit.
(3) Internal audit helps to identify weaknesses in the accounting systems and enables us to suggest improvements.
(4) Furthermore, audit assures directors not involved in the accounting functions on a day-to-day basis that the business is running in accordance with the information they receive.
(5) As a matter of fact, internal audit facilitates the provision of advice that can have real financial benefits for a business, including how the business is running, what margins can be expected and how these can be achieved. Advice can cover anything from the tightening of internal controls, to reducing the risk of fraud or tax planning and assessing business plan performance.
Why Need Internal Auditing Your Business?
(6) Consequently, such audit will enhance the credibility and reliability of figures submitted for management decisions.
(7) Again, it assesses controls. Internal audit is beneficial because it improves the control environment of organizations. Full implementation of principle of Segregation of duty helps assessing efficiency and operating effectiveness.
Why Need Internal Auditing Your Business?
What We Offer:
In summary our type of Internal Audit/Control will help you:
- Verify the existence of assets and recommend proper safeguards for their protection;
- Evaluate the adequacy of your system of internal controls;
- Recommend improvements in control processes;
- Assess compliance with policies and procedures of best sound business practices;
- Assess compliance with state and federal laws, regulatory bodies and contractual obligations.
- Review operations/programs to ascertain whether results are consistent with established objectives and
- Whether the operations/programs are being carried out as planned;
- Investigate reported occurrences of misbehaviours, fraud, embezzlement, theft, waste, etc.
And Now:
As a Firm of Chartered Accountants and Tax Practitioners, we ensure you have all the benefits enumerated above, when we become your internal control consultants/auditor. For your other business challenges send mail via [email protected] or call +234 8034347851. Call for your business plans, tax matters, contract bidding compliance certificates, C.A.C incorporation services and your mining licences.
If you enjoyed this post, Why Need Internal Auditing Your Business?, please share to reach your friends. If you follow us on any of our social media handles, you ensure you get regular updates. Just click on any of them now.
Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
