The Importance Of Internal Audit Report For A Business
Internal audits provide many important services to the organization or company management, including detecting and preventing fraud, monitoring compliance with company policy and government regulation and testing internal control. Smaller companies and businesses may need these functions more than big organization. If you run a small business, then you cannot afford employee fraud, government fine or waste. So, making an internal audit function gives an important step in your business growth.
It’s not a public Document
The internal audit report is not a public document as well as it is not freely accessible by the public generally because this report contains information, which may be misused. Also, the Audit report must be freely accessible to the statutory auditor because he / she is suppose to remark on the system of Internal audit in the company. The statutory auditor may refer the internal audit system as well as refer that an internal audit system exists in the entity as he is duty bound to comment on the robustness of the internal audit system in the company. Also, the statutory auditor may refer the internal audit report if for reviewing the work of an Internal Auditor. In addition, reviewing helps the statutory auditor in nailing down the extent of audit, and if he / she find that there is a robust internal audit system is in place, and then he or she can reduce the extent of audit.
Internal audit report is a document, which provides different insights regarding a business or an organization. The statutory auditor can use the report in different ways, including:
For deciding about the internal audit & internal control systems effectiveness
Generally, the internal audit report contains different insights about Internal Control system and Internal Check in an organization. The statutory auditor very well evaluates the effectiveness of both systems after analyzing the internal audit observation with management feedback.
For evaluating the company status of Internal Auditor
This report provides an insight just about the company status of internal audit report that can help the statutory auditor in finding the business status of internal audit with effectiveness of internal audit.
For deciding the extent of audit
Internal audit report of a business can provide the effectiveness of various systems in the company, which may further helps the statutory auditor finding the extent of audit needed for the systems. Also, the external auditor is interested in the results of such audit work only, and viewing the internal audit report gives him such insights.