What exactly does an internal auditor do? Internal auditors look at the policies, procedures, and financing of an organisation is or departments, so as to advise on where changes can be made. They also review the books of an organisation and audit how they are managed. Sometimes they may carry out investigations that are sensitive in nature. They analyse the methods and systems used by a company and then write reports for management to use to justify the methods and systems used.
They Report on the Controls in Place and any Risks that May Exist
Internal auditors review the control processes of an organisation. The scope of their work will include management’s response to risks, the risk management activities which they perform and the achievement of objectives and targets. Internal audit is independent of the company management and often carried out in conjunction with the Control Panel. Internal audit is not a mandatory requirement in the UK but it is useful in ensuring that the most appropriate controls are in place and that risks are identify and managed.
What other Profession does an Accountant have to Possess?
The accountant requires to have a Bachelor of Arts with a relevant National Diploma (NDA or equivalent). This requires the completion of a two-year postgraduate course (Bachelor of Science in Accountancy) from a UGC recognised university, at least one of whom will be an accountant. After graduating, the candidates need to sit a three-credit Examination known as the “ZAFE”. At the conclusion of their Bachelor of Arts, candidates need to sit another three-credit examination known as the “AICB”.
What is Involved in the Role of Auditors in the UK Financial Services Sector?
Auditors in the UK financial services sector are responsible for providing assurance and supervision of financial statements, which include the preparation of the balance sheet and statement of comprehensive income. They expect to report to management outlining areas where additional assurance can be provided. Management must consider any recommendations made by the audited statement of auditing. Management also retains the right to appeal any negative findings against the accountants’ reports. The majority of UK accounting firms are members of the Financial Services Authority (FSA).
Who are the External Auditors?
An outside auditor may be an accountant, a corporate auditor, a qualified insolvency practitioner (CIP), or an investment analyst. External auditors hire by a company in order to provide independent and objective assessment of its financial records and systems. Generally, external auditors perform their duties in relation to the requirements of the client organisation. In addition, the auditor may act in an advisory capacity and take the advice of management in regards to matters outside the scope of their examination.
What are the Specific Duties of an Internal and External Auditor?
The main duties of internal auditors are to review and prepare financial reports (which include the P&L, management’s commentary, and the income and expenses accounts), prepare a risk register, communicate with management and shareholders, ensure that accounts are accurate and up-to-date, and audit the accounting practices of the company. Where necessary, internal auditors also report to the CEO, the CFO, or the other senior management team.
How are the Responsibilities of an Internal Auditor?
Generally, they will carry out all the functions and responsibilities that can be perform by an accountant under the laws of UK. However, in the case of a large commercial organisation, internal auditing may be subcontract to external accountants, who will fulfil the roles and responsibilities as per the instructions of the client organisation. The audit process in this case is manage the company risk management team.
Conclusion
Are there any significant differences between internal auditors work and that of a professional risk assessment and assurance providers in business? There are not many significant differences. Both internal auditors and assurance providers deliver similar functions and both require undertaking similar functions. They are usually require to undertake independent in-house research, review, and analysis to give an assurance to the client organisation.
