INTRODUCTION TO INTERNAL AUDIT
INTERNAL AUDIT:-Internal audit is the appraisal of activities within an organization for the review of account, financial and other operation as a basis for protective and constructive service to management. The overall objective of internal audit is to assist management in achieving the most efficient administration operation of the organization.
DUTIES OF INTERNAL AUDITOR
The internal auditor carries out the following critical functions:-
- The verification and analysis of the accounting data of organization to ascertain the correctness of recorded information.
- The detention of errors, waste and fraud and provision of a measure of assurance that organizational assets are properly accounted for , and safeguarded from losses of all kinds
- The protection of organizational property, by ensuring the proper safeguards surround the acquisition of assets, their preservation against unnecessary deterioration or loss while held and their final disposition in a manna most advantageous to the organization.
- The appraisal of policies and performance with a view to reporting on faulty policies and method and recommending reviews where necessary,
- The investigation of compliance with procedure, policies and plans lay down by management .
- The provision of training ground for new employees, particularly of the accounting department.
- Determine the adequacy of the system of internal control. Ensuring compliance with management policies, financial Regulation and other circulars.
- Reviewing the accounting and internal control system in order to highlight weakness and make recommendations.
- Conducting special investigation on behalf of management, report finding and make recommendation to the management, reviewing the operational performance and analysis of variance for management action.