If you own a business, the annual audit can sometimes feel like a time-consuming and expensive process that only benefits the statutory authorities. We make sure all your onerous reporting requirements are met as painlessly as possible- keeping banks, creditors, finance providers, and even the Inland Revenue, happy.
However, more than that – we aim to offer you the kind of business advice that could help you to run your company efficiently and cost-effectively. We also offer expert corporate tax planning advice, to make sure you are as tax-efficient as possible.
We will review your accounts department and the control measures you currently use, recommending ways to improve. We might discover that your competitors are receiving payment more quickly than you, your stock levels might be higher than the industry norm, or perhaps your company takes longer than average to complete orders and sell finished work. Alternatively, there may be ways to improve your cash flow using some careful tax planning.
Internal Audit is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. It is an independent, objectives assurance and consulting activity designed to add value and improve an organization’s operations. It helps organization to accomplish objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and government process.
The Scope and Objectives of internal audit vary widely and are dependent upon the size and structure of the entity and the management’s requirements. The internal audit normally operates in one or more of the following areas:
Review of accounting system and related internal controls: Although the establishment of an adequate accounting system and related internal controls is the responsibility of the management. However, it is must that they are reviewed from time to time to ensure that they are operating effectively and recommend any improvement thereto
Examination of Management of financial and operating information : It includes the review of the means used to identify, measure, classify and report such information and specific inquiry into individual items including tests of transaction
Examination of the economy, efficiency and effectiveness of operations including the financial controls of an organization: This will help the external auditor when it has an important bearing on the reliability of the financial records
Physical examination and verification: It includes the examination and verification of physical existence and condition of the tangible assets of the entity.
Once the external audit has decided to place reliance on the work of internal auditor, he should coordinate with him, i.e., he should ascertain the internal auditor’s tentative plan for the year ,discuss with him the areas of possible reliance, the extent of internal audit coverage, test methods, methods of sample selection of documentation and review.
Further, the external auditor should be granted access to the internal audit reports and be kept informed of any significant matter, which comes to internal auditor’s attention. Similarly, the external auditor should ordinarily inform the internal auditor of any significant matters, which may affect his work.
The External auditor should take into account the following factors in relying on the work of internal auditor: