What is the best way to approach Internal Audit & Control ?
Internal controls are the components, rules, and systems carried out by an organization to guarantee the respectability of monetary and bookkeeping data, advance responsibility, and forestall forgery.
Other than following laws and guidelines and preventing workers from taking resources or committing forgery, internal controls can increase their functional proficiency by working on accuracy and on-time fiscal reports.
Internal audits assess an organization’s internal controls, including its corporate administration and bookkeeping processes. They assure abiding with legislative rules and guidelines, exact and opportune monetary detailing, and data assortment, just as they assist with keeping up with functional proficiency by recognizing issues and remedying slips before they are located in an external audit. An internal audit plays a pivotal role in an organization’s activities and corporate administration. Furthermore, the Sarbanes-Oxley Act of 2002 makes directors legitimately liable for the precision of their fiscal summaries.
How External Auditors Are Better Than The Internal Ones While Performing Internal Audit & Control ?
Audit is basically an autonomous examination and is a complete evaluation of the accounting books, ensuring their accuracy and complying with laws and regulations. The financial reports mainly add the balance sheet, cash flow statement, and many such activities.
The prime aim of the audit is to cross-check the data recorded in the financial report with the company’s financial status. This process complies with the auditing standard set by the government.
Internal Audit is performed by the accounting person, employed within the organization whereas External Audit is performed by the third-party organization.
Now, the question arises, how the External Audit is better than the Internal Audit.
IRS Compliance
A professional external audit provides an intriguing, non-biased assessment that complies with IRS regulations. The chief advantage of your
company associated with an external audit is that they can pass the actual review of the company’s audit without a delay. To counteract that, internal auditors may feel hesitant about providing tax compliance news and delay fixing it, causing the situation to worsen.
Independent Credibility
A good audit firm will help you build credibility and accountability into your financial reports, which is paramount in the auditing industry. The
external auditor will not feel pressured by your organization’s direct reports to achieve a favorable result keeping the authenticity.
Expertise
External Auditors usually hold audit qualifications from a professional accounting background with three years of experience and also possess a
practicing certificate.
Why to choose Pro-Team Solutions ?
Pro-Team Solutions is considered one of the top accounting firms in India. We believe in taking complete responsibility for the adequacy and effectiveness of internal control in auditing. Internal control systems are thus primary to the success and survival of associations. The Pro-Team is proficiently equipped with subject-matter experts who function as the company’s guiding force in commencing the process in systematic, economical, efficient, and effective operations with superior quality services inconsistent with the organization’s mission.
How do we function?
Pro-Team Solutions executes its comprehensive audit under the Company Act in India. We proficiently perform various management audits with specific scope coverage to meet any particular business objective. Internal Design Control reviews and implements the framework to assess the extent of risk involved and controls needed to mitigate it. Support undertakes a detailed review of processes at various functions of the organization to come up with a GAP analysis if any, and also supports in documenting the process wherever needed and executes it as a periodical process compliance audit to cover all the areas.
How Pro-Team strengthens the Internal Control System in Auditing?
- Transaction Audits – Vendor Bills Approval
- Process Audits – P02 Payment, Order to Cash
- Internal Audit / Compliance Audit
- Travel Claims Approval
- Stores Material Movement Verification