Internal and External Audit

The words “internal audit” often brings the feelings of fear, enquiry, and suspicion. Even in the best circumstances, most would find having someone review their activities unsettling or intimidating. Having a knowledge of the role of an internal audit and what to expect during an internal audit, and knowing potential downside to avoid will help put at ease and make a much more pleasant and valuable experience. Internal Audit is a departmental procedure carried out by the employees of the organization within a company that is tasked with a detailed unbiased standalone review of systems, business organizations, and processes. The role of Internal Audit is to provide the top management and governing bodies of an organization and factual source of information regarding the organization’s risks, control environment, operational effectiveness, and compliance with applicable laws and regulations. The reviews performed by Internal Audit are often called internal audits and internal audit may be used to assess an organization’s execution of a process against a number of lists of parameters among them the most significant are standards, policies, metrics, or regulations. These audits include examining a business’s internal structure around corporate governance, accounting, financial reporting, and IT controls. Internal audits include evaluating the effectiveness of critical business operations. The team usually responsible for carrying out the audit is the employee of the same organization. Internal auditors examine all areas of an organization which depends upon the skills they have. Royal Tax Solution is a professional highly reputed financial advisory firm that specializes in Internal Audit Consulting helping and assisting, identifying and spot the defaults or loopholes the organization contains which is inherent in their organizational structure. By getting outside support from a professional Internal Audit Companies it helps to save cost at affordable price and refocus and align their resource to productive ends which helps them serve their customers better, to understand organization’s impact on the outside world and fairly and equally the management is handling the employees. The above are the unseen benefits the organization gains when they appoint or give a clearance to carry out Internal Audit Services.

Internal Audit Checklist consists of the following steps.

  1. Initial document request list.
  2. Risk and other subject matter expertise.
  3. Preparing the audit program.
  4. Planning of the audit program.
  5. Tools for audit management.

An external audit is an audit carried out by the third party which is given the approval from the management of the company. Royal Tax Solution is a financial service company providing External Audit Consulting services advising them on the benefits of having an External Audit Companies on their payroll as the advantages outweigh the disadvantages.

External Audit Checklist similarly as Internal Audit Checklist contains the below mentioned steps.

  1. Pre engagement phase
  2. Planning phase
  3. Execution phase
  4. Reporting phase