Internal Audit

An internal audit’s purpose is to verify the organisation’s effectiveness and compliance with its operational standards. An organisation might have rules that govern how it operates, such as accepting orders, placing deliveries and paying. An internal audit can also help to determine if employees are following the internal operational standards.Internal audits are useful in identifying inefficiencies or problems and taking the necessary steps to correct them. An internal audit can help identify frauds committed by employees such as embezzlement or theft of funds. An audit can also be used to determine whether or not there have been deliberate cost overruns and whether one vendor is being preferred over others.It may be necessary to identify employee rotation among different roles and functions. Internal audits can be used to identify potential financial losses or threats. Financial leakage can be stopped by an organisation.