Internal Audit Services

As a business expands, its complexity increases and hence its functions must be performed by different personnel at different levels. Not all businesses are able to maintain a fully-fledged internal audit department within their organizational structure, yet management still needs assurance that internal control systems are working as intended.

The objectives of an accounting system are to ensure that all transactions are completely and accurately processed and recorded, and that the resulting accounting entries are valid. On its own, however, the accounting system cannot meet this objective because it is manned by people who cannot be perfect, and may be subject to errors, fraud or irregularities.

The purpose of internal audit is to ensure that the accounting systems and internal controls are working in the business as they were intended to. The internal audit function is thus necessary principally to prevent, detect, correct and adequately disclose errors and irregularities, in addition to ensuring an efficient and orderly conduct of business and adherence to management policies.

Internal audit functions can be performed weekly, monthly, or at quarterly intervals, depending on the preference of management. The frequency chosen depends on the level of exposure of the business to the risk of error, misstatement, falsification of records and fraud.