Internal Audits help you keep a consistency in the flow of work towards strategy plan to achieve corporate objectives. It helps in identification of gaps in policies and ensures organizational procedures are being followed. Its basic goal is to ensure effectiveness and efficiency of operations, reliability of financial reporting, and compliance with laws and regulations in an independent and objective manner to manage performance and product quality; it can be done with internal resources or can be outsourced to an external auditing vendor. Smaller businesses may require these functions even more than large businesses. A small business simply cannot afford employee fraud, waste, or a government fine. Establishing an Internal Audit function provides a vital step in the growth of a small business.
1. Frauds and Embezzlement: An on-going internal auditing of financial transactions may prohibit employee from misusing the company resources. Businesses loose sizable amount of money every year because of employee theft which may include misleading customers in payments, cheque tampering, improper transactions. Even with a small staff, a small business may create a program for monitoring employees and their behaviour.
2. Monitoring Internal Controls: To reduce exposure to frauds and other losses the policies and procedures should be examined on a regular basis. If credits are extended towards the customers it helps in reducing frauds, though the policies should be made such that it compliances with it. Formal audits should be assigned for such tasks as part time audits conducted by a person assigned with other duties may not be able to detect frauds.
3. Operational Audit: A growing business needs to monitor compliance with human resource laws whenever new employees join the company. Internal audit performs a vital service in reviewing these functions. The operational Audits examine the practices of a business than the finances. Ineffective operations lead to increased overhead and lesser profits. An Audit helps in identification of such ineffective operations and reduced the cost.
Some of the Benefits if you perform regular Internal Audits are:
Time Period:
It can be time consuming job which would require some additional resources and is done in different intervals of time which can be daily, weekly, monthly or annually it is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.
If you think you cannot afford an internal audit department, you can carefully plan by your own and create a system for identification of gaps in your business and the employees by setting up a small informal team who could audit your business or simply outsource to an Auditing vendor.
At Gapeseed Consulting our team members have specialized in carrying out the internal-management, forensic, informative system audits of small to medium sized business entities. Check
out our Auditing services, you can drop us a line here or feel free to send in an email to info@gapeseedconsulting.com.
1. Frauds and Embezzlement: An on-going internal auditing of financial transactions may prohibit employee from misusing the company resources. Businesses loose sizable amount of money every year because of employee theft which may include misleading customers in payments, cheque tampering, improper transactions. Even with a small staff, a small business may create a program for monitoring employees and their behaviour.
2. Monitoring Internal Controls: To reduce exposure to frauds and other losses the policies and procedures should be examined on a regular basis. If credits are extended towards the customers it helps in reducing frauds, though the policies should be made such that it compliances with it. Formal audits should be assigned for such tasks as part time audits conducted by a person assigned with other duties may not be able to detect frauds.
3. Operational Audit: A growing business needs to monitor compliance with human resource laws whenever new employees join the company. Internal audit performs a vital service in reviewing these functions. The operational Audits examine the practices of a business than the finances. Ineffective operations lead to increased overhead and lesser profits. An Audit helps in identification of such ineffective operations and reduced the cost.
Some of the Benefits if you perform regular Internal Audits are:
- It Improves the control environment of the business
- It makes the business more process oriented than person oriented.
- Identifies inefficient operational and control procedures and provides recommendations to improve those.
- Serves as an Early Warning System prior to external audits.
- As a whole it increases the accountability within the business.
Time Period:
It can be time consuming job which would require some additional resources and is done in different intervals of time which can be daily, weekly, monthly or annually it is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.
If you think you cannot afford an internal audit department, you can carefully plan by your own and create a system for identification of gaps in your business and the employees by setting up a small informal team who could audit your business or simply outsource to an Auditing vendor.
At Gapeseed Consulting our team members have specialized in carrying out the internal-management, forensic, informative system audits of small to medium sized business entities. Check
out our Auditing services, you can drop us a line here or feel free to send in an email to info@gapeseedconsulting.com.
