A company needs to conduct internal audits to manage its accounting process and ensure compliance with its internal protocols, rules, and standards when it comes to statutory laws and government regulatory requirements.
There are 2 types of Internal audits :
1. Government Auditors: They conduct systematic, organized, and independent reviews of public entities in order to assess and validate their economic, administrative, and other operations. A statutory law audit occurs annually under the various acts of the statutory law framework. It includes state audits, tax audits, and GST audits.
2. Management Audit: Evaluation and assessment of management performance are the objectives of management audits. It is carried out on a recurring or periodic basis for the correction point of view. Such audit includes internal audit, process audit, and Management audits
Types Of Audits Are
Implementation of Internal Controls
Internal controls being an essential part of any organization, are implemented to ensure the integrity of accounting details, encouraging accountability and preventing the risks of fraud. There are various checks and balances which is the most critical and complicated process of an entity. With our vast experience in various industry verticals, our team is aware of the best practices and various checks and controls at various processes. Most organizations are moving towards implementing ERP or automating their processes, hence this calls for strong checks and controls to avoid errors.
Types of Internal controls:
- Vendor Bill Verification system
- Material Movement
- Travel client processing
- Sale order and dispatch-related control
Why Internal Audit is performed?
- To identify the loopholes
- For preventive measure
- Management requirements