What is Internal Audit ? :
When we run an Enterprize we be too
busy in getting the goals or loosing the goals and become biased for the reason
of success or failure. If we get success we think that we are strong and if we
fail that then think that we are strong but in reality the things are
different. Your win or defeat is totally depend on following things.
1. Who You Are -
Assessment of Enterprize’s SWOT
2. In Which Environment You are- Assessment of Environment
in which Enterprize is working
3. Alignment of your decision with environment- Alignment
& Optimum use of Enterprizes resource & decision with environment.
If you assess
yourself or your organization well and if you know SWOT of your organization as
well as if you have clear picture of your environment like resources available
to you like team, machine, technology, policies, market, government rule etc.
and if your decision is aligned with all above things then you will get
success.
For a running Enterprize it is an
urgent requirement to have a watch like a Internal Audit who can do an
independent evaluation and diagnosis of Enterprize and give an assurance. It
require at both stages at a good stages as well as bad stages. In good stages
it gives an assurance that the movement is going in right direction hence no
worry and at a bad stages it gives a logical study of problems & solution. Actually
Internal audit is an independent organizational assurance and continuous
consulting activity which is designed to add value and improve the
organizational efficiency towards goal. It helps an Enterprizes to
accomplish its objectives by using a systematic, disciplined and regular approach
to evaluate and improve the effectiveness of resources. Internal auditing is a Doctor by
providing insight and recommendations based on analyses and assessments of data
and business processes.
With commitment to integrity and accountability,
internal auditing add value to board as an objective source of independent
advice. Internal auditing frequently involves measuring compliance with the
entity's policies and procedures. However, internal auditors are not
responsible for the execution of company activities;
How Internal
Audit Cover an Enterprise
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How We Do
: Internal Audit Execution Process
1. Clear Understanding of object of Enterprize for Internal Audit
2. Assessment of Enterprize Objective with Required Objective of Enterprize
by using firm’s experience
3. Finalizing Objectives of Enterprize’s Internal Audit
4. Discussing About Key Area & Risk Area and Finalization of
Priority Matrix & Planning
5. Audit Staffing as per Priority Matrix
6. Finalization of Audit Calendar for date of start, interim
reports & final reports
7. Audit Start and weekly query discussion with departmental head
8. Exceptional Query raised to high authority in a real time if
High ratio involved after partner permission
9. Query Solution and Preparing Fortnightly/Monthly Interim Report
10. Partner Meeting with Departmental Head on Interim Report and
Representation Taken
11. Consolidation of Interim Reports
12. Issuance of Draft Report to Board for Board Discussion
13. Incorporation of Board Representation
14. Issuance of Final Report to Members/Shareholders/Appointee
Prepared BY : CA Pankaj Jaiswal, pankaj@anpllp.com Mobile-+91-9819680011
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