Internal auditor, Accounting Basics

Assignment Help:

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.


Related Discussions:- Internal auditor

What are the various means of calculating depreciation, 1. Double declining...

1. Double declining method 2. Units of production method 3. Sum of year digit method 4. Straight-line method Depreciation Fund Method Insurance Method Annualy Method

The accounting records of nu-tonics inc., The accounting records of Nu-toni...

The accounting records of Nu-tonics Inc., include the following information for the year ended December 31, 2013:  Materials Inventory as at 1 January 2013 $ 20,000  Materials

Explain in brief the inventory carrying costs, Question 1: What are the...

Question 1: What are the kinds of inventory? Transaction inventory Speculative inventory Precautionary inventory Question 2: Explain in brief the invent

Depreciation, Depreciation on an Motor Vehicle of 5,000,000

Depreciation on an Motor Vehicle of 5,000,000

Internal audit, Accounting is a significant service activity in business an...

Accounting is a significant service activity in business and is concerned along with collecting, evaluating, communicating and recording the results of past events. The history of

Which brand insulating oil tester is the best, GDYJ-503 is developed accord...

GDYJ-503 is developed according to the national standard GB-86 Insulating Oil Dielectric Strength Testing Method .The tester can test three cups of oil at the similar time. LCD scr

Accounting conventions, Accounting conventions The phrase 'convention' ...

Accounting conventions The phrase 'convention' is used to signify customs or ethnicity as a guide to the research of accounting statements. A variety of accounting conventions

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd