internal audit

Examining, monitoring and analyzing activities related to a company's operations, including its business structure, employee behavior, and information systems.

He performs the internal audit work ( auditor ) appointed by the company and is sufficiently familiar with the methods of auditing, monitoring, financial and administrative auditing, and the regulations and laws of the company and the state.  فوترة الكترونية

The duties of the internal auditor

The internal auditor evaluates the operations on a daily, weekly, monthly or annual basis to measure the effectiveness of the company's internal control system and helps detect evidence of any fraud, waste or misuse of the company's resources.

Some departments may be audited more frequently than others. For example, the manufacturing process may need daily audits for quality control purposes, while the human resources department may need an annual review of records and operations.

The departments to be evaluated must be notified to obtain the necessary documents and materials for the auditor. A surprise review can be conducted if illegal activity is suspected.

internal audit procedures

An internal audit is initiated by the auditor to evaluate existing processes and procedures. Then the auditor analyzes the results and compares them with the internal control objectives.

Determines if results comply with internal policies and procedures as well as state laws. Finally, the auditor submits a report to the owner of the company, the company's board of directors, or the audit committee, according to the size and system of each company.

Types of internal audit

The internal audit is divided into two main types:

Financial review

- Review production and efficiency

 Which in turn are divided into three main types:

Performance review

Regulatory review

Review special assignments.  

Financial review:

The financial audit is intended to verify the extent of the commitment of those responsible for implementing the company's activities to apply the policies and regulations of financial and administrative procedures that have been approved by the company's senior management as a method for performing financial business, and then to report the degree of compliance with them.

- Review production and efficiency:

This type of review seeks to examine and evaluate the performance of the company's business as a whole in order to achieve efficiency and effectiveness in the use of available resources in the light of several objective criteria for evaluating efficiency.

This is a brief summary of the two types of internal auditing, and we will list them in detail in another article

God willing .

There are two types of reports submitted by the auditor or internal auditor:

The official report and the interim report or preliminary memorandum.

The interim report usually includes sensitive or important findings that the auditor feels are of high importance and must be immediately shared with the company's owners.

The final report is more formal than the interim report. The final report includes a summary of the procedures and methods used to complete the audit, a description of the audit findings and suggestions for improving internal controls and monitoring procedures.

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