Internal auditing is the process of evaluating the company’s internal controls that include its corporate governance and accounting processes. It provides assurance on the company’s risk management and governance. The internal audit program is a thing that should not be overlooked by any company, in fact, it should be taken proper care of because if the internal audit of the company is good and strong then you can avoid any fraud happening in the company and also you can check whether everything happening in the company is as per rules and regulations, and thus you can avoid any penalties due to non-compliances in advance. We, Chaturvedi associates provide the best internal audit services in Bahrain and to the businesses all around the world, as internal auditing is a very important thing for the business. In this blog, we will give you the steps to build an internal audit program.
Following are the steps to build an internal audit program for your organization:
- Establish authority: The person who is heading the internal audit in your company should be given the full authority to take the necessary steps and he/she should establish authority amongst all the employees and every employee involved in the process should be reporting to the head. The establishment of the authority is necessary so that immediate actions can be taken n when required and time should not be wasted in getting the permissions from higher personnel.
- Operational independence: This step goes hand-in-hand with the step of establishing authority. Because internal audit cannot happen with conflict of interest and the auditing party must have all the operational responsibilities so that the internal audit can be done smoothly.
- Policies & Procedures: No audit can be successful without the policies and procedures and thus you need to establish policies & procedures in your company. When the company has the established policies and procedures then the audit can be done based on that policies and procedures. You can also take the help of audit firm for the internal audit process and the list of audit firms in Bahrain is very large but Chaturvedi associates are one company that have highly qualified and experienced auditing professionals that can help you very much in your internal audit.
- The framework of controls: This step is important for understanding what exactly you are looking in your audit? What is the purpose of your audit? So, the framework of controls is an important step in establishing an internal audit program.
- Reporting structure: Reporting is one of the most important parts of any task and thus communicating effectively the results of audit is very much important. The audit report should be communicated to the management and to the compliance officer. Reporting to the right person in the organization is important to ensure proper corrective steps when required. Also, you can make 2 different reports – one for the management of the company and one for the stakeholders of the company, and the report for management should be more detailed than the report for stakeholders.
- Corrective steps: The last step is the review of the testing and the gaps found during the audit process and then the corrective steps should be taken to ensure the mitigation of any found risks like non-compliance, fraud, etc.
So, these are the steps to build an internal audit program for your company and this audit program is very necessary as it will remove any risk or anticipated risk so that you do not have to face any problems later and in external audit.
We, Chaturvedi Associates provide best internal audit services and many other financial services in Bahrain and to the companies worldwide, also we are one of the best audit companies amongst the list of audit firms in Bahrain, so feel free to Contact Us for any financial services for your business.