INTERNAL AUDIT

INTERNAL AUDIT

Internal audit is now known as an important activity that many businesses are interested in because it directly affects business operations.

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WHAT IS INTERNAL AUDIT?

Internal audit is an independent and objective assurance & consulting activity related to governance, risk management, and control within the enterprise, thereby contributing to helping the enterprise achieve its goals. your target. To ensure independence and objectivity, internal auditing must usually be under the highest leadership level of the enterprise (including independent and non-executive members). Depending on the specific organizational model, the highest level of leadership to approve and work with internal audit may be: Supervisory Board (under the General Meeting of Shareholders), Audit Committee (under the Board of Directors). governance, with independent and non-executive members), Board of members,….

Internal audit is highly disciplined and systematic. Working processes, implementation programs, assessments and conclusions of internal audit must all be closely and reasonably linked to each other. 

PURPOSE, AUTHORITY, AND DUTIES OF INTERNAL AUDIT? 

• Purpose: Internal audit aims to bring value and improve business operations.
• Power: To fully perform its duties/responsibilities, internal audit must have access to documents/people/assets related to its duties; have the right to report and communicate directly with the highest level of leadership about implementation plans, findings and obstacles during work implementation to receive timely and complete support. These rights need to be clearly specified in the enterprise's internal audit regulations so that all departments understand and comply. In addition, in the organizational model, the internal audit department needs to belong to the highest leadership level of the enterprise to ensure organizational independence. Depending on the specific organizational model, the highest level of leadership to approve and work with internal audit may be: Supervisory Board, Audit Committee, Board of Members,….
• Mission: Internal Audit is responsible for organizing and implementing independent and objective assurance and consulting activities related to governance, risk management, and control in the enterprise, thereby contributing to helps businesses achieve their goals (strategy, operations, finance, and compliance).

THE ROLE OF INTERNAL AUDIT

Internal audit plays an important role in organizational governance through basic roles such as:

• Risk management: Identify and evaluate the effectiveness of processes, internal control systems, corporate governance, and corporate accounting.
• Consulting and control: Internal audit advises on building processes, controlling new projects, and assessing and managing risks.
• Test and evaluate: Ensure the process of conducting inspection activities to provide an objective assessment of effectiveness, compliance and control performance.
• Report: Evaluate the financial situation, business, and operating system of the enterprise, then report directly to the Board of Directors and Board of Directors. This requires the internal audit system to be continuously tested, updated and perfected.

HOW THE INTERNAL AUDIT PROCESS WORKS?

Normally, a complete internal audit process will go through 4 stages. Specifically: Planning - Field investigation - Reporting - Monitoring. 

1. Planning

- The internal assessment team determines the scope and goals

- Review relevant guidance and results of previous assessments

- Make schedule, budget

- Identify the process owners involved

2. Field evaluation

This step of actual audit activities will include the following tasks:

• Through interviews with key employees of the business to assess understanding of processes and control measures.
• Review relevant documents and artifacts as examples of implementing controls, testing controls with a sample over a certain period.
• Record the work performed, identify recommended exceptions.

3. Report

The process of issuing internal audit reports includes:

• Draft audit reports in a clear and concise manner

- Encourage the intended audience to read and understand the report.

- Review drafts with business leaders to ensure accuracy of findings, release, and distribution of reports.

4. Monitor

In the internal audit process, this is the stage that is most often overlooked because many people mistakenly believe that just completing the internal audit report is "done". However, new recommendations must be closely monitored to ensure that changes are made to address the findings identified in the report.

Above is the basic answer to the question "What is internal audit?" and issues related to internal audit. Businesses need to understand this to ensure compliance when developing their own internal audit regulations.

INTERNAL AUDIT SERVICES OF CPA HCM

The internal audit process not only checks financial statements but also participates in the financial control process, evaluates compliance and effectiveness of business operations, thereby solving difficult problems. difficulties are encountered in the most thorough way to help reduce risks and errors. CPA HCM with a team of leading experts with over 15 years of experience, knowledgeable about activities and business fields is committed to providing customers with internal audit services with the highest efficiency.

CPA HCM will accompany businesses to advise them on appropriate internal control systems depending on the size of the business.

We provide reports on detailed assessment of risks in the business's current management and operating system, thereby providing the best assessments and solutions to overcome and preventative measures. risks for businesses in the business management and operating system.

Customers interested in internal audit services of CPA HCM, please contact Hotline: 19000380 to receive advice and support from leading experts..