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• It reinforces application of internal controls thus enables the company to operate in an
orderly and efficient way.
• It prevents and detects errors and frauds through periodic comparison of budgets, routine
and surprise checks.
• Assists management in implementation of company policies through reporting on adherence
or non adherence to laid down policies of the company.
• Assists external auditor in highlighting areas of weaknesses in internal control system. This
reduces audit time for the external auditor and thus there is a saving on audit fees.
• Assists the company in achieving its objective by ensuring that all laid down rules, procedures
and policies are followed e.g. adherence to budgets and forecasts assists in decision
making.
• The internal audit function guards company’s resources against theft and misuse through
proper functioning of the internal control system and periodic verification of assets.
Wilfykil answered the question on April 11, 2019 at 07:19
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