Internal Audit Can Save You From Huge Loss
check system of accounts, the firm carried out. As the system is so powerful that it is not possible to obligate the mistake and scam without an involvement of two or more people fraud cannot be committed, and an inclusion of the process in the Internal Control System helps the organization in achieving the goals and operational efficiency. Dubai auditors from AAB can provide a hassle free service for your firm.
Objects of Internal Check:
- The possibility of mistake, scam, and anomaly to be curtailed.
- Clerical ability in the organization to be improved.
- Exercising ethical inspiration over the employees.
- Ensuring correct recording of all business transactions.
- Embezzlement of cash and goods to be stopped.
Benefits of Internal Check:
- Mistakes and scam to be minimized
- Early finding of errors and frauds
- Increased productivity
- Suitable division of work
- Good Internal control over cash and another day to day transactions
- Well-organized and inexpensive business operations
- Expediency to auditors
Features of Good Internal Check:
Division of work – No single person should have independent control over all important aspects of the business
Job Rotation – Every staff members of the business should be rotated in such way from time to time so that no one should be allotted a particular job for a long time.
Authority Levels – The financial and administrative power should be assigned very sensibly to different officers.
Those who have physical custody of asset should not be permitted to access to the books of accounts.
The responsibility of Auditors in Internal Check:
The auditor should examine carefully the system of an internal check after having been satisfied with the working of proper and effectiveness of internal control system and then decide his scope of work. And start checking the efficiency and its existence by checking work. And start checking the efficiency and its existence by checking various items from different areas.
If the internal control system does not satisfy the auditor then he should report the client in writing after checking those accounts where errors are likely to exist.
If the auditor is dissatisfied with the internal control system, a report to be submitted immediately to the client after scrutinizing those accounts where blunders are likely probable.
If the auditors are satisfied with the overall system except for some areas of some of the sections of the system appear to be insufficient, then the client should be made aware of the unseen risk by giving suggestions to overcome the weakness.
In the modern audit, an internal check is a constant process and is an indispensable part of the day-to-day business routine. It relates to all the transactions that take place every day. An internal check is achieved by a complementary allocation of duties and by independent verification of the work of one person by another.