All you need to know about internal audit tasks

Internal audit tasks Please note that there is a difference between the internal control system and the internal audit, as the internal control system is one of the preventive functions used by companies to prevent accounting errors, embezzlement or administrative fraud, whether intentional or unintentional.

Amr Farag - • Internal Control

All you need to know about internal audit tasks :-

The difference between internal audit and internal control tasks: -

Before starting the detailed explanation of the internal audit tasks, please note that there is a difference between the internal control system and internal audit, as the internal control system is one of the preventive functions used by companies to prevent accounting errors, embezzlement or administrative fraud, whether intentional or unintentional.

While internal audit in companies is a therapeutic process that is used to treat and review what has been disclosed by the internal control process and internal operations of the company, the employee responsible for implementing the internal control system is completely different from the chartered accountant responsible for carrying out the internal audit tasks.

Tasks of the Internal Auditor and Financial Audit :

• Examine and audit the revenue and expenditure documents and ensure their authenticity. • Review accounting entries and posting and ensure the correct recording of amounts and entries. • Examine the documents and books of the boxes and verify the results of the inventory work and its implementation in accordance with the established laws. • Evaluate warehouse documents and books and ensure the integrity of the inventory process and storage methods. • Review and examine all accounts, final lists and the validity of the results of financial reports.

Internal audit tasks in achieving compliance : -

• Ensure the conduct of all operations, accounts and all departments, sections and employees in accordance with the policies and rules set within the company and compliance with international accounting rules. • Examine and review all contracts and agreements signed by the company during the period and ensure the implementation of what has been done. • Review the complaints submitted to the department regarding any financial or administrative irregularities. • Carrying out surprise inspection campaigns on all departments to ensure compliance with laws.

Internal Performance Audit :-

• Give an opinion on the effectiveness of the internal control system and the unified accounting system applied in the company, and what are the shortcomings and defects. Evaluating the organizational structure of the company and the extent of its application. • Monitor the objectives achieved by the departments and identify the reasons for the default and strengths. • Determine ways to optimize the use of human and material resources.

The role of internal audit in advisory tasks : -

• One of the most important tasks of the internal auditor in companies is to provide technical opinion when developing the general budget plan. • Strengthening the concept of internal control among the company's employees and departments. • Provide supportive recommendations to employees to increase efficiency at work and accomplish tasks. Provide a thoughtful technical opinion on the operations, contracts and contracts that the company will conclude in the coming period commensurate with the company's capabilities.

The role of internal audit in fraud and fraud : -

The weakness of the internal control and internal audit systems of any company leads to the commission of more crimes of corruption and fraud in companies, so the main objectives of internal audit include the following:

Protect the company's assets from misuse or manipulation. Monitor the ways assets are used to achieve their protection and preservation.

Ensure the validity and accuracy of each statement recorded in the books. Determine responsibilities and authorities.Good use of material and human resources. Facilitate executive procedures to achieve work smoothly and flexibly.

The difference between internal audit and external audit : -

An external audit is an objective and structured process that aims to reach evidence and uses it to evaluate the financial operations and events carried out by the company and match them with the plans it has set, to finally reach a neutral result that it puts in reports to decision makers, managers, investors and everyone who is interested.

From the definition, it is clear that there is a great difference between the role of internal audit and the role of external audit in the company, but let's first get to know the similarities between them.

Similarities between internal audit and external audit :

The two types aim to ensure the activation of the company's internal control and spare the company's funds from any embezzlement or losses.

The two types enhance the existence of the unified accounting system with maximum effectiveness and in a way that helps the safety and correctness of the preparation of financial statements and reports.

The relationship between them is mutual and reliable, for example, the external auditor relies most of the time on the internal auditor's reports on internal control systems, while the internal auditor relies on the external auditor's report and his neutral opinion on the financial statements.

Differences between internal audit and external audit :-

• Objective of the review :

The objective of the internal auditor is to ensure the integrity of management, while the external auditor aims to prepare reports confirming or denying the conformity of the examination process he carried out with the financial statements and accounts and to express his opinion on them.

• Scope of work :

The scope of work of the internal auditor is determined by management, while the scope of work of the external auditor adheres to the Egyptian or international external audit law, which defines the duties, rights and scope of work of all external auditors.

• Beneficiaries of the audit report :

The internal auditor's report form serves the company's management only, while the external auditor's report serves everyone who is interested in accounting information related to the company, such as shareholders, current and prospective investors, government bodies such as the Tax Authority and others.

• Independence :

Internal audit, although it is an independent management, exists within the company and is subject to the authority of management, which may affect its neutral opinion and make its degree of independence much less than the external audit, which is responsible for a chartered accountant who is completely independent of the company appointed by the board of directors directly and has no relationship with the company's employees, and is therefore more impartial and independent.

Planning the internal audit process : -

The internal auditor prepares a written annual plan and is approved by the company's board of directors, including plan objectives, scope of work, timing and resources.

The general objectives of the company, the activity to be audited and the means used for internal control over it are taken into account.

The potential risks of the activity must be taken into account, especially with companies operating within the industrial and real estate business sector, such as contracting companies.

The tasks of the internal auditor are determined in advance before the start of the review process, and the files and documents on which he will base his work are determined.

Determine the employees who will carry out the internal audit process and the time required to perform their task .

Internal audit services from Egyptian Certified Public Accountants

The accounting office of "Egyptian Certified Public Accountants" is one of the largest accounting offices in Egypt and the Middle East, an expert team consisting of more than one consultant, chartered accountant and tax accountant, our office is honored to provide many internal and external audit services, including:

Analytical studies of your activity.

Attention to the planning of the review process.

Preparing a system for financial statements, cash flows and financial reports.

Comply with the regulations and laws of your company and work within the objectives of the company's general plan.

Study the problems facing your company and the effects they may cause.

Providing legal advice, accounting advice and well-studied tax advice.

Designing the internal audit program to suit the nature of your business.

Designing a general accounts program consisting of several diverse programs such as accounting program, accounts program, warehouse management program, CRM customer management program, human resources program, production planning programs and others.

Issuing internal audit reports that are impartial and compliant with prevailing laws.

Audit your company's final accounts and reconcile them with the records.

Examine the financial statements and verify the assets in the company.

We also provide many accounting, tax, social insurance and feasibility studies services.

( For our services click here )

( To order a free demo from the program or to know the price, clickhere )

Do not hesitate to contact us and we promise that you will soon share your success story with our office