Write short notes on the Objectives of Internal Audit

Auditing and Assurance Revision Questions and Answers

The objectives of Internal Audit can be stated as follows:
To verify the accuracy and authenticity of the financial accounting and statistical records presented to the management.
 To ascertain that the standard accounting practices, as have been decided to be followed by the organization, are being adhered to.
 To establish that there is a proper authority for every acquisition, retirement and disposal of assets.
 To confirm that liabilities have been incurred only for the legitimate activities of the organization.
 To analyze and improve the system of internal check; in particular to see (i) that it is working; (ii) that it is sound; and (iii) that it is economical.
 To facilitate the prevention and detection of frauds.
 To examine the protection afforded to assets and the uses to which they are put.
 To make special investigations for management.
 To provide a channel whereby new ideas can be brought to the attention of management.
 To review the operation of the overall internal control system and to bring material departures a non-compliance to the notice of the appropriate level of management; the review also generally aims at locating unnecessary and weak controls for making the entire control system effective and economical.

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