How to conduct an internal audit

An internal audit is carried out in order to obtain true information about the financial and material condition of the organization. At the same time, the methods and procedures of the economic system are evaluated for their productivity and efficiency.

Instruction manual

1

Before conducting an internal audit, you need to determine the goal and objectives that you would like to see based on the results of the work of auditors. The creation of their own audit can be negatively accepted by employees of the enterprise, which may adversely affect the work of the organization. Therefore, it is necessary to convey to all services and departments of the enterprise that the audit is not intended to control the employees, but the work process, identifying shortcomings and deviations in the work, thereby helping to achieve better results.

2

At the board of directors or at the meeting of founders, a decision is made to create an internal audit, such a decision is recorded in the relevant documents.

3

The rules and powers of internal audit are formalized in a written document signed by the board of directors or founders of the company.

4

Before conducting the audit, the auditors write a plan that sets out the method of conducting the procedures and the amount of work. The plan is signed by the head of the organization. If necessary, the manager gives written explanations about the enterprise.

5

If during the audit of the production process or a similar operation a specialist with specific knowledge is needed, then a third-party professional is hired for such verification and an appropriate agreement is signed with him.

6

After conducting its own audit, the department makes a report in which the responsible auditor expresses an opinion on all material relationships and gives detailed recommendations. In expressing an opinion, the auditor is governed by standards in accordance with the professional code of ethics of auditors.

7

The department of auditors should conduct an internal audit on one assigned task until all errors and deviations are corrected.

8

Remember that the auditor is independent of company management. Only in this way will the reliability of the data provided in the final report of the auditor be ensured.