Internal Audit is an independent and objective activity designed to perform a variety of confirmation services and advisory activities to improve and add value to the organization’s operations. Helps organizations achieve their goals. This activity contributes to a structured approach to assessing and improving the effectiveness of risk management. Oversight and governance.
The internal auditor is the person who works within the internal audit department of the organization and assumes his responsibilities. Activities that focus primarily on financial and accounting issues until the full operational level is reached. The scale of decentralization of the organization further complicates activities and processes, which creates the need to find ways to control, This leads to the growth of internal audit. The American Institute of Internal Auditors promotes the profession of registered internal auditor, It gives it a professional character, develops and creates regulations, rules and directives and sets international standards (standards) for monitoring audits and auditors. Trainee.
The scope of internal audit includes examining and assessing the adequacy and effectiveness of the organization’s internal control system and the quality of performance in the performance of different activities.
Objectives of internal control systems
- Reliability and integrity of information and data
- Commitment to policies, programmes, procedures, laws, directives and contracts
- Asset protection
- Economic and efficient use of resources
- Achieving and achieving the specific objectives of operations, activities or programmes.
- Monitor the Department and its mechanisms of action to ensure that there are no errors that allow fraud and fraud.
- Obtain a neutral technical opinion based on strong evidence to match the financial statements prepared by the agency.
Types of internal audit
- Financial audit: Analysis of the economic activity of the organization as measured by accounting reports.
- Environmental audit.
- Administrative audit: Oversees all departments of the facility to ensure that individuals perform the tasks assigned to them fully in accordance with the objectives of the facility.
- Operational audit: An audit examines whether key businesses within the organization are effectively achieving their goals and operating effectively and economically.