10 Jul What is the purpose of internal auditing?
All the professionals involved in the audit and businessmen are aware of the main importance for successes of this business of having Internal Audit teams that responds in the interest of the Audit Department and that is an allied factor of the top management the entity, thus ensure the proper management, use and control of human, material and financial resources. In this article we present important elements referred to the Internal Audit.
The Audit is defined as:
A systematic process, practiced by the auditors in accordance with established technical standards and procedures, consisting of obtaining and objectively evaluating the evidence on the statements contained in legal acts or events of a technical, economic, administrative and other nature, in order to determine the degree of correspondence between these statements, the legal provisions in force and the established criteria.
The Internal Audit
The Audit service includes the objective evaluation of the evidences, carried out by the internal auditors, in order to provide the independent conclusion that allows to qualify the fulfillment of the policies, regulations, norms, legal dispositions or other legal requirements.
In any well-organized entity and in order to maintain surveillance over the chain of management control, it is necessary to create a systematic review and assessment program to verify that the delegated responsibilities have been well addressed and that the established policies and procedures they have worn as planned. Engaging a professional that offers corporate audit services can actually come in handy.
In addition, it is very important that there is a regular review by a qualified staff to determine that the internal control system in general is adequate, and through constant testing, determine that they have been operationally effective. If there are faults, deficiencies or changes in the existing conditions, due to which the internal control system is ineffective, it must be modified appropriately, making the necessary changes to the new situations.
We must insist that, regardless of the oversight exercised by the internal auditor over compliance with the responsibilities delegated by management to its executives, and the constant verification of compliance with the current internal control systems, it is part of its responsibility to obtaining sufficient and competent evidence to enable it to make an opinion, on the accuracy of the economic-financial situation presented by the entity and whose results show the financial statements that are periodically issued.
We believe that an internal auditor can become the eyes and ears of the company’s management, taking into account not only its qualification and moral ethics, but also because it is an official that eventually manages to obtain a high level of control over all of them. each of its functions of the entity where he works, which allows him to become an advisor to or of the executives of business management.