√ Definition of Internal Audit, Purpose, Function and Scope
Definition of Internal Audit, Purpose, Function and Scope - In the discussion this time About Knowledge will explain about Internal Audit. Internal audit is related to an assessment of an organization or company.
Definition of Internal Audit, Purpose, Function and Scope
Apart from being related to the company, internal audit is carried out to evaluate the effectiveness and management of the company. For more details, please see our explanation of the definition, purpose, function and scope of internal audit. Read more below.
Definition of Internal Audit
Internal audit or also known as internal audit is an assessment of the beliefs, independent, objective and consulting activities created to add value and improve operations organization. This internal audit can support an organization to achieve its goals by bringing a different approach systematic and disciplined in evaluating and improving the effectiveness of risk management, control and governance processes manage.
Definition of Internal Audit According to Experts
The following are some definitions of internal audit according to experts.
1. Hiro Tugiman
The definition of Internal Audit according to Hiro Tugiman is an independent assessment function within the organization to test and evaluate the activities/programs being carried out.
2. Association of Internal Auditors (IIA, in Messier: 2005)
The definition of Internal Audit according to IIA is an independent and objective activity along with consulting which is structured to increase the value and operations of the organization/company.
Internal audit can support an organization or company in achieving its goals with a very structured and disciplined approach. The internal audit approach is carried out by evaluating and increasing the effectiveness of risk management, control and management processes.
3. Sukrisno
The definition of Internal Audit according to Sukrisno is an examination carried out by the company's internal audit unit on financial reports and reports corporate accounting and review compliance and compliance with policies determined by top management, government regulations and the provisions of the union profession.
4. Mulyadi (2002)
The definition of Internal Audit according to Mulyadi is the implementation of audits/auditors who carry out tasks within the company to find out the extent to which procedures and policies have been implemented properly. well, determine how effective and efficient the producer of organizational/company activities is, as well as assessing the effectiveness of the information produced by each unit within organization/company.
Internal Audit Purpose
Hiro Tugiman (2006) states that Internal Audit has a goal of helping members of the organization to carry out their duties effectively. In internal audit activities, it seeks to carry out analysis and provide various suggestions and assessments. The autid screening process includes monitoring, which is very effective with normal payments.
Then Sukrisno Agoes (2004) states that the purpose of internal audit is to help company management carry out tasks through analysis, assessment and providing advice and input regarding activities or programs (which are included in inspection).
To achieve the objectives of the internal audit, the auditor must carry out the following things:
- Provide certainty related to regulations and procedures that must be obeyed by all elements of management
- Provide good judgment and increase effective supervision with reasonable standards and also carry out identification established control system which includes management's internal control and operational activities relate.
- Ensure that all company assets are safeguarded responsibly from misuse, loss, corruption and other such things.
- Submit some suggestions in order to improve the company's operational system to make it more effective and efficient.
- Give an assessment related to the quality and quality of work to each part designated by the company's management.
- Ensuring that the existing data is processed within the company can be accounted for.
Internal Audit Function
Sawyer (2005) states that the internal audit function is:
- Supervise all activities that are difficult for top management to handle.
- Identify and minimize risks
- Support and assist the management of the technical field.
- Perform Validation reporting to managers
- Help the decision making process
- Do future analysis (not things that have already happened)
- Assist managers in managing the company.
Scope of Internal Audit
Guy et al stated that the scope of the internal audit has been translated by Paul A. Rajoe, among others:
- Perform effectiveness analysis (Reliability and Integration) of financial and operational information and It is also a tool used to identify, measure, classify, and report information the.
- Carry out observations of the existing system in order to ensure compatibility between activities/activities/programs carried out by the organization in policies, regulations, procedures, laws, plans that have a significant impact on its activities organization.
- Observing the various methods used in maintaining company assets/assets. If necessary, verification of these assets will be carried out.
- Provide an assessment of the effectiveness and economy in the use of resources
- Observing operational activities or organizational/company programs whether the results obtained are consistent and in accordance with predetermined goals and plans.
Thus has been explained about Definition of Internal Audit, Purpose, Function and Scope, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.
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