Internal Audit
And
Differences between Internal Check & Internal Audit
Internal Audit:
Objectives:
A Service to Management
Provides assurance of an effective system of Internal Control that is not excessive.
Ensure reliability and integrity of accounting and financial system & Operating Performance.
Ensure compliance with policies, plans, procedures, laws & regulations.
Ensure adequacy of arrangements for safeguarding the Assets.
Facilitate prevention & detection of frauds.
Highlight the deficiencies (in the system, control, practices etc),
Efficiency & scope for economy in the utilisation of resources.
Internal Audit Cell
Functioning at Hqrs as well as Divisions.
Normally consists of one SSO, One TIA and one ISA under the control of Dy.CAO/G or Sr.DFM
Theme Based Audit is one of the Important function of the Internal Audit Cell
Differences between Internal Check & Internal Audit
SN | Internal Check | Internal Audit |
1 | Check of Day to Day transactions. Work of One person is proved independendently or complementary to the work of another | Selected few topics - Checking in all aspects to ensure effectiveness of System, Compliance of policies & Prevention of frauds. |
2 | Checking by the Same section staff | Review activity carried out by Persons totally independent of Internal check personnel |
3 | Frequency Daily/Regular Basis | Frequency - Periodic Basis |
4 | Built in device | Not built in device |
5 | Object: Early detection of fraud or prevention of frauds at the time of passing Bills | Suggests System improvement & ensure compliance, service to the Management, Compliance of policies |
6 | Checking every aspect | Checking few selected topics thoroughly(in all aspects) in order to achieve the object of System improvement/Service to Management |
7 | Object: Narrow | Object: Broad |
8 | Basis: Transaction/Bill/Event | Basis: System as a whole |