Top 6 Functions Performed by Internal Auditors

You must have heard that internal audit is a necessity for an organization to improve the business performance. Be it any department of an organization, each of them needs an overview to remove the flaws or loopholes (Read what are the importance of internal audit). An auditor takes the core responsibility to perform the audit essentials and give you an exceptional output that will not only lift your business profit but also, uplift the goodwill of your company. The initiative takes place internally by an internal auditor who tries to channelize the internal proceedings and strengthen the business base. This article will take you through the core functions performed by an internal auditor that will help you to see transparency in the company’s internal management. Let’s understand who an internal auditor is.

Who is an Internal Auditor?

An internal auditor turns out to be an scrutinizer who examines the activities prevailing inside an organization. The job of an internal auditor is to fetch out the loopholes in the organizational working process so that the errors can be rectified internally at the earliest. Moreover, an internal auditor is appointed so as to smoothen the external audit process, which turns out to be a complicated one. Any error figured out by an external auditor will hamper the goodwill of the business in the eyes of the government. For now, let’s have a look at the functions performed by an internal auditor.

1.Keep an Eye on the Present & Future Risk

An internal auditor ends up scrutinizing every minute details about your company. In this monitoring process, they will help you and your business to identify the present and the future risk that might occur. Keeping an eye on the business risks is one of the secrets of the business success. By presenting the list, they also help you to figure out practical solutions and schedule the implementation time for the same.

2.Unveil the Fraudulent Activities in the Company

One of the main reasons that a business organization gets nervous about the term “Audit” is that it inspects and unveils the illegal activities being performed in n organization. Many at times, the business owners are not able to see the positive growth even after implementing the best business strategies. Also, the finance allotted, according to the budget, turns out to be insufficient due to internal politics in the company. If you are facing the same issue, then it’s an alarming call for you to understand that your business demands audit. By conducting an internal review, you will be able to resolve the issues at a faster pace and make your company ready for an external audit.

3.Creation of Audit Report

Every step that’s taken during the internal audit process and its outcome gets penned in the audit report that is prepared by the internal auditor. It is expected from the business owners to follow through the report and take immediate actions to rectify the issues that need urgent attention.

4.Assessing Internal Controls

The internal auditor takes the responsibility to understand the internal proceedings of the company by different measures. They do use different audit tools, interview the employees, understands the work-flow etc. Moreover, they try to access and understand the plans that the company holds for its future.

5.Safeguard Assets

Another initiative that is taken by the internal auditors is to safeguard the company assets. The job of an auditor makes them evaluate the assets, and as a part of it, they understand the complete value of the business. By availing the internal audit services, you can safeguard your company assets and also plan to buy further.

6.Process Improvement

The last step that an internal auditor performs is streamlining your company’s internal processes. The auditor will help you to channelize and set the priorities followed by the next set of essential steps to be taken. There are multiple reasons to avail the audit services that will not only increase the business growth but will also stabilize it in the future.

In the end, we can say that an internal auditor acts as a catalyst between your organization’s present scenario and the end organizational goal. Additionally, they prepare the base for an external audit process that serves out to be utmost important as you need to score well in the audit report. Scoring a good audit score leaves a positive footprint of your business in the minds of the external auditors and the government. To help you in this process, JAXA Chartered Accountants are here to guide you at every step. We stand as one of the best auditors in Dubai as our audit experts provide the best possible tailored solutions to our respective clients. To have a word with our experts, do contact us-we’d be glad to assist!