A internal auditing acts, through research, interpretations and opinions, as a form of evaluating a company's internal controls system, presenting leaders with qualitative data and information. Basically, the purpose of internal auditing may be represented by some objectives, such as verifying the effectiveness and efficiency of internal controls, using methods to safeguard assets, and ensuring the integrity of records and information.
But the internal auditing goes far beyond that. It plays a fundamental role for the company, ensuring the appropriateness and effectiveness of internal controls and the reliability of information, for example.
It is one of the concerns of leaders to anticipate changes to positively guarantee their effects on the company, making the role of internal auditing become essential, since it provides valuable information that helps the company create strategies to minimize the impacts of these changes.
A internal auditing is attentive to each phase of a company's growth and development, managing to form a model of interaction with it, which provides a positive reach in forecasting and diagnostic actions, that is, the great advantage of internal auditing is to have permanent control of management processes.
In many cases a internal auditing it is considered punitive when, on the contrary, it plays a fundamental role in improving management, since its main objective is not to locate errors, but to monitor internal controls until their real efficiency is achieved. Verifying possible flaws or errors that pose risks to the company and make the internal control of organizations inefficient is one of the functions of internal auditing , however, they are actions that increase your contribution according to the company's development.
As the organization moves through the changes, the focus of internal auditing varies over time, because as these changes happen quickly, important details in one phase may become less significant in another, making internal auditing always aligned with the company's objectives.
Thus, the growth and changes in the company strongly reflect the role of internal auditing , who understands the organization as a whole and assists it with its needs and expectations. A internal auditing is always attentive and ready to help, reinforcing new rules and analyzing possible flaws in internal controls.
With the frequent deployment of new values in the market, also driven by the advancement of technology, a different vision of internal auditing , as a measurement and prevention work, which aims to seek improvement for existing problems and prevent future problems.
What is the difference between internal auditing and external auditing?
A internal auditing It is a function that, although operating independently of other departments and reporting directly to the company's auditing committee or president, resides within an organization (i.e., they are employees of the company or outsourced). It is responsible for carrying out audits (financial and non-financial) within a wide range of areas within a company, as indicated by the annual audit plan. The look of internal auditing It focuses on the main risks faced by the company and what is being done to manage those risks effectively, to help the organization achieve its objectives.
The external audit, on the other hand, is an independent body that resides outside the organization. They are focused on the financial, accounting, and economic information or risk associated with the finances and are appointed by the shareholders/owners of the company. The main responsibility of the external audit is to carry out the legal review of financial information, providing an opinion on whether they are a true reflection of the company's financial situation.
For entrepreneurs and managers who want start an internal audit process in your companies or sectors, hiring an external consultant is the best solution if we take into account factors such as effectiveness, experience and methodology.
Hiring internal auditing consultancy , the company protects itself against common errors that occur due to lack of familiarity with the necessary processes. On the other hand, the greatest benefit is the fact of ensuring a standard that will in fact indicate elements to be improved.
Composed of multidisciplinary professionals with over 25 years of experience in the auditing segment, Taticca Allinial Global Brasil offers the following Internal auditing variations : Co-sourcing or outsourcing, internal audit planning, review of the internal audit structure, structuring of the internal audit function, auditing of processes focusing on risks and controls, auditing focusing on financial integrity - accounting, reporting and controls, technical and operational auditing.
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing services, internal auditing, accounting, taxes, corporate finance, financial advisory, risk advisory, technology, business consulting and training, for more information, at www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has certified methodologies for carrying out activities.