A company maintains records of all its financial transactions. An accountant manages and maintains these records and generates statements based on these records. The financial statements of the company can be used internally and externally. The detailed daily, weekly and monthly statements are usually used by management to govern the performance and productivity of the company. The detailed statements help the company to set goals and to ascertain achievements. To ensure that the presented financial statements are fair and true, audits are conducted.

Internal auditing is the process of analyzing a company's financial records and determining if they are accurate and that there has been no malpractice, misrepresentation, or financial mismanagement. Audited reports are also mandatory for submission to certain authorities and institutions.

Internal audit ensures that the financial accounting practices that are being followed are as per the accepted accounting standards and company policies. This avoids manipulating the financial statements by using the wrong calculation methods and accounting practices.

Internal audits verify the accuracy, compliance and completeness of the records. Internal audits are performed more frequently than external audits and can be used to identify personnel or departments who are not maintaining their records properly. Regular internal audits keep the company's financial accounting procedures aligned and help the company prepare for external audits. Internal financial auditing gives feedback to the management based on which they make their decisions.

For Internal Audit assistance contact SISA Associates.