Auditing????? A big question for corporate who just taking this as a obligation. Audit is not only a statutory obligation but what role an auditor plays while doing auditing is important to understand. Auditing means to evaluate and to review the effectiveness of a company's internal controls/policies and its operational programmes. Business scenario is to achieve objectives not just by flying on profitability but to maintain an effective system of internal controls.
Now again a big question that zoom in the picture is who will do better job of auditing who can be responsible, accountable to give reliable financial reporting of operations, can prevent fraud and misappropriation of assets. Many certified audit firms in India do this job in well manner and contribute to a company's audit system. Both internal and independent auditors plays a vital role in feeding company’s growth by showing true and fair financial picture of company.
Certified Internal Auditors in India always put an effort in structuring an effective audit system. This audit system facilitates corporate to detect irregular transactions, helps in supervision and monitoring and to promote operational productivity. Audit system by Internal auditor helps in maintaining proper internal control through which organization can pursue and attain corporate objectives. Certified Internal Auditors in India also helps to assess the risk of material misstatement in a company's financial reports. Regular check on company’s operations and putting internal control checks can detect different types of fraud and other accounting irregularities. In India Certified Audit Firms, helps in designing the internal controls so that any material irregularities can easily detected in any circumstances. Without this system of internal controls, it will be difficult for a company to create reliable financial reports for internal or external purposes. Thus, to determine or to allocate resources and to know which segment and product line of the corporate is making profit or losses, it very important to have an effective and efficient Internal Control System.
Additionally, a good internal audit control check also has ability to manage affairs of the business by telling the exact status of its assets and liabilities. Accordingly, an effective audit control by certified internal auditor of certified audit firm in India always helps in preventing debilitating misstatements in a company's records and reports. Strong and a well balance audit systems can reduce various types of risk like risk of misstatements in financial statements, misappropriation of assets, information manipulation and other related type of risks.
A Certified Auditor’s responsibility is not only to cross check all the material items but it also includes evaluate regulatory compliance, maintaining two way communication between audit team and management, providing recommendations for controlling deficiencies in organization operations, providing assurance for good corporate governance and help staff in understanding the risk associated with non compliance.