Internal audit is carried out in order to obtain truthful information about the financial and material condition of the organization. At the same time, the methods and procedures of the economic system are evaluated for their productivity and efficiency.
Instructions
Step 1
Before conducting an internal audit, you need to decide on the goal and objectives that you would like to see following the results of the auditors' work. The creation of their own audit can be negatively accepted by the employees of the enterprise, which can negatively affect the work of the organization. Therefore, it is necessary to convey to all services and departments of the enterprise that the audit is designed to control not the employees, but the work process, identifying shortcomings and deviations in the work, thereby helping to achieve better results.
Step 2
At the board of directors or at a meeting of founders, a decision is made to create an internal audit, such a decision is recorded in the relevant documents.
Step 3
The rules and powers of internal audit are formalized in a written document signed by the board of directors or the founders of the firm.
Step 4
Before conducting an audit, auditors write a plan, which prescribes the method of conducting the procedures and the amount of work. The plan is signed by the head of the organization. If necessary, the manager gives written explanations about the work of the enterprise.
Step 5
If during the audit of a production process or a similar operation a specialist with specific knowledge is needed, then a professional from outside is hired for such an audit and an appropriate agreement is signed with him.
Step 6
After conducting its own audit, the department makes a report in which the responsible auditor expresses an opinion on all material relationships and makes detailed recommendations. When expressing an opinion, the auditor is guided by the norms in accordance with the professional code of ethics of auditors.
Step 7
The audit department should conduct an internal audit on one assigned task until all errors and deviations are corrected.
Step 8
Remember that the auditor is independent from the management of the company. This is the only way to ensure the reliability of the data provided in the final auditor's report.
