Internal Audit

Internal controls are important to your organization. However, they do not ensure that all control objectives of your organization can be achieved as they have certain limitations that may reduce their effectiveness and advantages to the business. This is especially obvious when the controls are performed manually. Limitations of internal control and its impacts Today […]

Internal controls are significant to every single business. They play a vital role in ensuring that the businesses are running in their best state by ensuring they can attain the following goals: Assets have been properly safeguarded. Complied with Relevant laws and regulations. Financial reporting is reliable. Businesses are operating effectively and efficiently. However, despite

In business practices, whenever an auditor undertakes an auditing engagement, they have to measure and evaluate their independence and reliance on objectivity regarding the undertaken task. Their independence and adherence to objectivity ensure success in auditing efficiently and effectively. The auditor’s independence is highly objective and critical to the continuation of the audit in a

In order to evaluate a company’s financial statements, an experienced professional is hired to perform the financial audit. The goal of this approach is to find any major inaccuracies in such assertions. Financial audits aim to guarantee that financial statements offer a fair and true picture of a company’s financial situation. Financial auditing, sometimes known

An internal audit is a type of internal control process designed to examine and evaluate the effectiveness of other controls within an organisation. Its main objective is to safeguard the organisation’s assets and properties from loss, waste as well as fraud. An internal auditor takes place within a company, as the name implies working only

Significant deficiency as defined by, the Public Company Accounting Oversight Board (PCAOB, is a deficiency alone, or a combination of them, in internal control over financial reporting (ICFR) of the entity. However, it is less severe to the company than a material weakness on the financial reporting of the company. Yet, the weakness should also

A material weakness, according to the Public Company Accounting Oversight Board (“PCAOB”), is a deficiency, or a group of deficiencies, in a company’s internal control over financial reporting (“ICFR”), that makes it reasonably likely that a material misstatement cannot be avoided or identified in the financial statements of the company promptly. Deficiencies in one or

The audit committee is set up to oversee a company’s financial accounts and reporting. It is made up of independent members of the board of directors. In order to produce reports that are accurate and have high integrity, the audit committee must include at least one board member that has knowledge in finance or accounting.

Internal audits and external audits are the two types of audits that can be performed. They complement each other and may often need to collaborate to attain their objectives. The two functions do not contradict or compete with one another; instead, they contribute to good governance. So what are the key differences between internal and

To avoid risks, entities will first identify the high-risk areas and use a number of internal controls to tackle them. However, sometimes the controls are not enough to keep the risks and threats at bay. There are also times where those controls in place are not functioning as they should. All these might cause issues,