Internal audit
From ArticleWorld
Contents |
Meaning
Internal audit is a kind of audit which is not a statutory audit. Internal audit is a tool of management and required for controlling the internal matter. Through the Internal audit the financial transactions are regular and the mistakes are detected. The Internal audit is done not only after completion of the year, but it can be done during each financial year whenever required. In many cares it becomes continuous or routine audit. In the care of statutory audit only statutory matters or points are audited which in care of internal audit almost all the financial transactions are audited.
Internal Auditor
Internal auditor is a person appointed by the management with an object to audit all or specified area of finance or related to finance. The Internal auditor may or may not be independent body or agency. He may be a staff of the concerned organization. He is responsible to the management and to the government, law or shareholders. He has to report to the management. On the basis of Internal audit report the management may take action to improve or regularize the facts reported.
Internal Audit Report
The internal audit report is prepared by the internal auditor or auditors. The report is designed as per requirement of the management. The internal audit is being done for various purposes and hence the requirement of the report differs from organization to organization. Thus there is no specific format of internal audit report, while the statutory audit reports are generally in specified format as per relevant law.
Internal Audit & Concurrent Audit
The Internal audit and concurrent audit have similar nature and both are initiated by the management it self. But there is a basis defense between internal audit and concurrent audit. Concurrent audit is regular audit of ant transactions while internal audit is a periodic audit. In Concurrent audit report of audit may not be there, but in internal audit report is always there.