- The main function of an internal audit function is to find out whether the internal control system is working successfully or not.
- The internal audit function usually carries out consistent and regular reviews of the strength and weaknesses of the internal control system and this will act as a deterrent against perpetrators of frauds.
- This unit also advices management to put up appropriate controls to remove existing weaknesses in the internal control system and how to improve on the strengths.
- By reviewing the company‘s actual performance against the budget on a continuous basis, and the follow up of any significant variances, the audit function will highlight the possibilities of errors or frauds in the business, if these variances are unaccounted for.
- The internal audit function ensures that proper books of account are maintained.
- This unit will also be involved in setting up procedures for new areas of operations and thus help in sealing off any loopholes which can be used to perpetrate frauds.
- The unit will also follow up the recommendations raised by the external auditor hence keep management on toes about implementing them.
Wilfykil answered the question on February 22, 2019 at 12:18
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