Internal audit entails independent and constant appraisal of the company’s activities, operations and controls so as to safeguard the company’s assets, ensure reliability of the company’s records and efficiency of operations all of which are aimed at assisting the management to manage the business better. It acts as a watchdog over the company’s entire controls although it can be regarded as one of the controls in itself. The duties of the function include:
- Review of the accounting and internal control systems. Management is responsible for establishing an internal control system. These systems demand proper attention and continuous review, a function that is usually assigned to internal audit.
- Carrying out examination of financial and operating information. This may include detailed testing of transactions and accounting and operating procedures.
- Review of the economy, efficiency and effectiveness of operations including non-financial controls of an entity.
- Review of the entity’s compliance with laws and regulations.
- Review of the entity’s compliance with management policies and other internal requirements.
- Carrying out independent investigations into the affairs of the company as required by management