Audit
The companies’ internal and external financial audit services mainly aim to ensure the validity, efficiency and reliability of the financial statements prepared by the management and the company’s internal financial department.
Internal Financial Audit:
The internal audit service aims to evaluate the company’s internal control system, monitor the operational and financial management’s compliance with the standards and policies set, and verify the effectiveness of the risk assessment and management system.
Internal audit includes:
- A comprehensive review of the work of the financial department of the company.
- Statement of the extent to which the performance of the financial department deviates from generally accepted accounting standards.
- Clarifying the size of the gaps and errors that exist in the current internal financial system.
- Providing the administration with the final report of the internal financial audit with tips and instructions to avoid current problems and gaps in the work of the financial department.
External financial audit:
It is a careful examination of records and procedures, carried out by an independent external auditor, appointed by the owners of the company.
The external auditor is a professional and independent third party that performs an unbiased review of the company’s financial records.
Including payroll, purchases, sales, inventory and company assets.
It also looks at the company’s external financial investments and loan structuring.
In order to ensure the accuracy of the financial statements and verify the company’s ability to continue or not.
It is not possible to imagine the continuity and success of any organization or institution in the absence of applying an internal control system on its financial performance to achieve a clear vision for external parties of its financial performance, and there may be restrictions that can be avoided by achieving harmonization between internal and external audit practices, and therefore there is a question about the importance of internal and external audit and They are as follows:
Is there an effect of harmonization between internal and external auditing on the quality of the auditor’s reports?
Certainly, there will be quality in the reports in the event of an external and internal audit, and this will reflect positively on the company, for example, such as its speed in making the right decisions, such as investment, risk reduction, speed of development and growth, how to enter markets, and others
