What is Internal Audit?

Internal Audit is a branch or an employer of people working inside a corporation this is tasked with imparting unbiased, impartial opinions of structures, commercial enterprise agencies, and processes. MY AUDIT – An Internal Audit Management Software offers senior leaders and governing bodies of an employer an goal supply of records concerning the employer’s risks, manipulate environment, operational effectiveness, and compliance with relevant legal guidelines and rules.

Who Performs Internal Audit?

In big organisations, an inner audit is accomplished via way of means of a group of specialists who’re hired in the employer. Although now no longer mandatory, it’s far typically carried out with the intention to assess the effectiveness of inner manipulate, the stability of the economic device, performance of commercial enterprise processes, and so on.

What is the Purpose of an Internal Audit?

Auditing on a periodic foundation continues a corporation – huge or small – and all of its personnel on the pinnacle in their game. Regular inner audits are critical for agencies in a huge variety of industries, consisting of economic establishments and healthcare providers. Our Internal audit automation software helps auditors to create wonderful stories for the commercial enterprise geared toward comparing overall performance and figuring out actionable methods to enhance withinside the future.

What are the Types of Internal Audits?

Compliance Audits examine compliance with relevant legal guidelines, rules, regulations and procedures. Some of those rules may also have a full-size effect at the corporation’s economic well-being.

Environmental Audits check the effect of a corporation’s operations at the environment. They might also check the corporation’s compliance with environmental legal guidelines and rules.

Information Technology Audits may also examine records structures and the underlying infrastructure to make sure the accuracy in their processing, the safety and exclusive consumer records or highbrow property.

Operational Audits check the employer’s manipulate mechanisms for his or her normal performance and reliability.

Benefits of an Internal Audit

Proper Accounting Systems: Internal audits introduce the perfect device of accounting. An accounting device accommodates of a sequence of sports in a corporation via way of means of which transactions are processed so that you can preserve economic facts.

Better Management: Internal audit guarantees that there’s higher control of the commercial enterprise withinside the employer. An auditor might be capable of factor out the regions of weak point withinside the control.

Progressive Review: The development of the commercial enterprise may be reviewed with the assist of an inner audit. The figures from the preceding years are as compared to the ones of the existing year.

Effective Control: An inner audit is crucial so that you can maintain powerful manipulate over commercial enterprise sports. Control comes beneath the capabilities of control and is associated with the supervision and path of ongoing operations.

Limitations of Internal Audit

The following are the restrictions of an inner audit.

Staff Shortage: One of the few obstacles of an inner audit is the lack of group of workers. A affordable audit group of workers is needed to have a look at the facts and behavior a right inner audit.

Time Lag: As inner audits start whilst accounting end, there’s a full-size time lag among the recording and the checking of the entries.

Error: The challenge of an inner audit is that there can be undetected mistakes that continue to be withinside the books of debts because it relies upon upon the know-how of the inner audit group of workers.

Responsibility: The challenge of an inner audit is that control does now no longer sense that it’s far their obligation to finish the formalities of the audit. The audit group of workers should provide tips for the right functioning of a commercial enterprise. However, the pinnacle-stage control might now no longer always be aware of the tips offered, which might be of no assist or a loss to the corporation.

Internal Audit Programme Checklist

Audit Planning Audit Closure Execution
Task_Assignment Audit Closure Execution of Audit I
Additional Audit Program Execution of Audit II
Briefing Meeting Execution of Audit III
Kick of Meeting
Preparation of Audit
Production Process HR Process and Admin Process HR Process and Admin Process
Budget V/s Actual Analytical Review Overtime
Efficient utilisation of resources Attendance Payroll
HR Records Contract Labour (Regulation &Abolition)Act
I/O Ratio Contractor
Log Reports Expenses
Maintenance Record Factories Act
Quality Check Leave
Sales V/s PPC
Procurement Process Sales Process Sales Process
Import Bills sent on collection basis Receipt of sales order
Import - L/C monitoring Credit Notes Sales return
Import - Payment Delivery Scrap Sales
Import - Receipt of material from customs authority Export sales
Import Licenses Export sales - Claims
Import Licenses Export sales - Payment
Purchase Orders Export sales - Working capital cycle
Raising Of Indent
Logistics Process Inventory Management Process Indirect Taxes
Bill passing  Physical verification of Stock  Custom 
Capacity utilization  Receipt of acknowledged Invoices Excise and Cenvat 
Contracts  Written-off Stocks  Service Tax 
Finance & Accounts Process Finance & Accounts Process Planning Process
Accounts Payable and Disbursement Processes  Debtor Management - Review the credit balance in debtors’ accounts: Production Planning Process
Accounts Payable and Disbursement Processes - Duplicate payments and lost discounts Debtor Management -Bad debt assessment / write off policy Sales Planning  
Accounts Payable and Disbursement Processes - Payment Controls  Debtor Management -Balance confirmation system   Sales Planning - Order Based Sales
Accounts Payable and Disbursement Processes - Policies and procedures Major Expenditure Sales Planning - Target Based Sales
Accounts Payable and Disbursement Processes -Disbursement controls Store Planning
Debtor Management - Credit and collection policy of company
Debtor Management - Review of Ageing Analysis
IT Process Marketing Process Branch Office Process
Data Access  Distribution Planning  Collection Mechanism 
Data Distribution Market Development  Cash In Hand
Data Protection And Data Recovery  Market research & demand forecasting  Documentation 
Networking  Product Development  Extension for Delayed Jobs 
Power Supply Option Sales administration  Fixed Asset 
Safeguards To Ensure Unauthorized Entry  Sales Pricing  Marketing Activities 
Software Resources  Sales Promotion  Other Areas 
Web-Expossure and Security    
MIS Process Report Follow up of the Previous repo
Sales Audit committee Admin Process
  Presentation   Branch Office Process 
  Coaching for Next Team  Customer Service Process 
  Report   Direct Taxes 
    Finance & Accounts Process 
    HR Process
    Indirect Taxes 
Follow up of the Previous repo Follow up of the Previous repo Process Documentation
Inventory Management Process  Production Process  Flow Chart 
IT Process    Sales Process   RCM 
Logistics Process    Followup I  SOP
Marketing Process   Followup II 
MIS Process Followup III 
Planning Process
Procurement Process


We wish this has helped you to higher apprehend the position of inner audit, count on the manner on your subsequent inner audit, and keep away from the ability pitfalls that could derail an inner audit. For greater records concerning how MY AUDIT’s Internal Audit Management Software Tool may also help your employer with its compliance needs, Fix A Free Demo of our Audit software today.