What is an Internal Audit?
Basically, an internal audit is the examination of a company’s activities and operations conducted by an internal auditor. As a brief explanation, during an internal audit, the documents, records, and equipment are checked to ensure that they are all up-to-date. The products are also examined to see to it that they are all in good standing. The flow of business is also assessed to make sure that everyone is one the same page.
There a couple more of things that happen during an internal audit. But in short, it is the examination of what happens with regard to an organization’s operations that should be in accordance with the country’s laws and the company’s policies.
What is an Internal Auditor?
The person who does the examination in an internal audit is called an internal auditor. This person is responsible to check and double-check everything to ensure that all the activities are free of fraud or unethical conducts.
As part of our experience as being one of the auditing firms in Dubai, sometimes, organizations have their own internal auditors. At times they hire audit and assurance service from the biggest auditing firms in Dubai. Regardless of the case, these certified internal auditors do the same job.
With the help of a certified internal auditor, either from the company itself or the big 4 audit firms or some other services, the performance of a company is maintained or aided to become better. The regulatory compliance is also assessed, and the auditor sees to it that they are continuously complying with the laws and policies.
Things that Certified Internal Auditors Do in an Audit
There are a couple of things that happen during an audit. To sum up, it usually revolves with what an auditor does while auditing a company. You can go here to find out more regarding auditing and assurance.
- Analyze Documents – As mentioned above, auditors check the documents and records that a company has with regard to their operations. The implementation of their objectives, goals, expected performance, and other things is assessed by an auditor to see if they are all being correctly implemented by the organization. Also, the regulatory compliance is always checked to maintain the assurance that they are ethically operating.
- 2. Interview Employees – Sometimes, the employees are even sat down to be asked with a couple of questions to see if they are knowledgeable with what they’re doing and why they’re doing it in accordance with the objectives of the company. They are also asked regarding the basic things, such as the firm’s safety standards, policies, etc.
- Note the Areas to Improve – The higher ups of a company are interested to know if the correct flow of things is followed every transaction or operation. They want to know if there are areas that are needed to be improved. Also, they are interested in knowing if there is even a little of non-compliance on their part with regard to anything. This is why an auditor is tasked to conduct an audit. The auditor will then take notes of the possible things that the organization can still be better at. If the company is not operating at its full potential, the auditor will record all the areas that it’s not giving its best in and suggest the approaches they can use to further enhance. As an auditor, this person will discuss with the concerned person or management with regard to how to better implement the approaches that are suggested.
In short, a certified internal auditor is simply around to ensure that everything is going well. As consultants from one of the auditing firms in Dubai, we can definitely say that this should be seen as a positive thing and an opportunity to grow, not the other way around. Audit and assurance service is indeed helpful for the growth of your business.