Importance of Internal Audit

Question

Write down the importance of Internal Audit?

Answer 1

Planning is a vital aspect of internal audit. The auditor can plan to verify the accounting system. The plan might relate to accounting functions such as sales, purchase, expenses, income and shares. The planning consists of degrees of risk and extent of audit. It as well describes the nature of audit work. Controlling is a vital aspect of internal audit. Auditor can observe the operations of accounting system. He can manage audit work throughout audit program. The entire audit work is distributed between audit staff.

Recording is a vital aspect of internal audit. The audit can record the figures and facts in order to articulate his views in the business activities. The audit working papers and audit note book are employed to record the detail. Independence is vital facet of internal audit. The work of internal audit is completed by an employee of the company. He should not be influenced by management. He should be free in developing audit program, audit reporting and audit investigation.