Functions of Internal Audit

Question

Elucidate various Functions of Internal Audit?

Answer 1

The function of internal audit is concerned with analysis of internal check. The internal audit can look in the duties of every employee. All employees are provided jobs on the basis of their capabilities. The auditor can test the efficiency of internal check. The function of internal audit is examining the application of lawful requirements.

The accounts are made under certain legal frame work. Verification of accurateness is a function of internal audit. The accurateness of accounting books and records can be verified with the aid auditing techniques. The audit methods consist of inspection, inquiry, observation, computation, confirmation and appraisal. An auditor can verify the accurateness through these methods.

Confirmation of liability is a function of internal auditor can decide the work done by each person. The negligence or carelessness on the division of worker is noted. The concerned person is given a chance to elucidate his position. If the reason is not justified, the liability is confirmed. The function of internal audit is to inspect the assets protection. The appropriate record is to be maintained. The possession should be in the hands of senior officer. The assets are employed for business only. There are appropriate purchase and disposal of these assets. The internal auditor can verify that assets are protected.