Internal auditor, Accounting Basics

Internal Auditor: Internal Auditor is a worker of the organization in contrast to an external auditor who is paid a fee for his employment. The internal auditor is responsible for doing monitoring activities and the other employments, including operating and designing the system of internal control, auditing the data reported to the directors of the company, and assisting external auditors. The head of the internal audit job reports directly moreover to the chief executive or to the audit committee of the Board of Directors.

Internal audit contains continuous verification of entries showing in the books of account along with the original vouchers and exact accounting of assets. Moreover, it attempts to make sure that the procedures and policies regarding financial matters are being complied along with. Internal auditing is also related with administering the system of internal check hence mistakes, intentional or innocent, are prevented from taking place.

We must distinguish an internal auditor from an external auditor. Whereas an internal auditor devotes his complete time and energy to the requirements of one company (that is his employer, an external auditor functions many clients.  The main function of the external auditor, as indicated earlier, is to safeguard the interests of the shareholders (through whom he is appointed) through independent and impartial appraisal of the financial transactions of the company hence he could report on the net profit earned through the company and its financial position. His task is that frequently objective outsider, expressing expert views to the financial condition and operating outcomes of the client's business.

Parts from shareholders, the other parties as banks, lending institutions, and government agencies and so on, reply on the fairness of those financial reports in making definite decision regarding to a given company. An auditor is bound through a set of professional regulations that include an examination on technical competence and adherence to a code of moral conduct.

Posted Date: 4/2/2013 6:58:56 AM | Location : United States







Related Discussions:- Internal auditor, Assignment Help, Ask Question on Internal auditor, Get Answer, Expert's Help, Internal auditor Discussions

Write discussion on Internal auditor
Your posts are moderated
Related Questions
The Development Stage Entities Topic specifies the guidelines for identifying an entity in the development stage, addresses the applicability of generally accepted accounting princ

Q. What do you mean by Aging? Aging -- a process where accounts receivable are sorted out by age (typically current, 30 to60 days old, 60 to 120 days old and so on.) Aging perm

Q. Explain about Exchange-price or cost principle? When resources are transferred between two parties such like buying merchandise on account the accountant must follow the exc


Q. Consistency in accounting principle? Consistency necessitates that a company use the same accounting principles and reporting practices through time. Consistency makes possi

Q. What is Operating revenues? Operating revenues are the revenues generated by the main activities of the business- generally the sale of products or services or both.



Bonds issued giving the holder the option of exchanging the bonds for capital stock of the corporation are called

Q. Explain about Accrued assets? Accrued assets are assets such like interest receivable or accounts receivable that haven't been recorded by the end of an accounting period. T