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The financial cost of an internal audit includes expenses such as salaries for audit staff, costs of training and development, and resources for audit tools and software. Additionally, there may be indirect costs related to the time spent by management and employees in preparing for audits and responding to findings. Overall, while these costs can be significant, effective internal audits can lead to improved compliance, risk management, and operational efficiency, potentially saving the organization more in the long run.
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When internal audit is mandatory?
internal audit is mandatory for all listed companies and for other companies if: 1) The paid up capital and reserves are more than Rs 50 lacks as at the commencement of the financial year , or 2) Avg annual turnover exceeds Rs 5 crore for a period of three consecutive financial yrs immediately preceeding the financial year
What is the Difference between HR audit And Financial Audit?
Under HR Audit, audit of HR procedures and process is done while in financial audit, audit of finance related matters are done.
The types of Cost Audit?
types of audit approach
Can statutory audit be done after tax audit?
Statutory Audits are those mandated by a statute. So by that definition even tax audit is a statutory audit.The management of the organization makes the appointment of an internal auditor. The statutory auditor is appointed by different authorities. First statutory auditors are appointed by the shareholders in the annual general meeting. The main object of the statutory audit is to form an opinion on the financial statement of the organization auditor has to state that whether the financial statements are showing the true and fair view of the affairs of the organization or not. The main object of the internal audit is to detect and prevent the errors and frauds.The scope of the statutory audit is fixed by the company act. it can not be changed by mutual consent between the auditor and the management of the audited business unit. The scope of the internal audit is fixed by the mutual consent of the auditor and the management of the unit under audit.
Why audit is conducted?
there are two types of audit, external and internal. Internal audit is necessary in any business enterprise in order to determine adherence to company policies and determine losses due to irrregularities by employees. External audit is likewise mandated for the final presentation of the financial condition and statement of earnings by the company for a certain particular period, either a calendar or fiscal year as mandated also by government regulatory agencies of a country.
Difference between cost audit and financial audit?
Cost audit is done to audit the cost elements of unit costs while in financial audit, audit of financial statements is done to find out information provided is true and fair or not.
What is the difference between Financial Audit and Cost Audit Describe each of them?
A financial audit is an independent examination of a company's financial statements to ensure accuracy and compliance with accounting standards and regulations. It verifies that financial records reflect the true financial position of the organization. In contrast, a cost audit focuses on verifying the cost accounting records, ensuring that cost data is accurate and that the company adheres to cost control measures. While financial audits focus on overall financial integrity, cost audits are concerned with efficiency and the management of resources. For more insights on audit practices and project management training, visit PMTrainingSchool .Com (PM training).
How Internal audit is different from Risk based internal audit?
A risk base internal audit is latest approach to ensure best practices aiming at maximizing the impact of audit by focusing on the major strategy ,regulatory, financial and operation risk that confront an organization while internal audit is traditional independent examination of financial and operation of an organization to ensure economic,effective and efficiency utilization of an organizations resources
Can cost accountant do the internal audit of the company?
Cost Accountant can very well do the internal audit of the company. Since internal audit is the 'seeing us inside' and also the scope is the operations and compliance part of the activities, cost accountants have expertise in conducting the same. They are the 'most fit' professionals for conducting internal audit of manufacturing operations, processes and activities and assessing the risk involved in each area. The new Companies Act, as such, recognises cost accountants along with other finance professionals for award of internal audit assignment. And internal audit has been made mandatory for certain class of companies. But, the cost accountants who are engaged in cost audit assignment of the company cannot be engaged for internal audit of the same company as the engagement would affect objectivity and there may be conflict of interest.
What is the meaning of financial statement level risk?
Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.
Can a audit be qualified based on internal control on financial reporting?
Can not answer this question - reword it.
What is the differencebetween internal and external auditors?
External Audit means which seeks to test the underlying transactions that form the basis of the financial statements. Internal audit is a function that, although operating independently from other departments and reports directly to the audit committee.
What are two differences between an internal audit and an external audit?
1) An internal audit is an appraisal of activities within company areas, whereas an external audit looks at the financial statements as a whole 2) An internal report is normally given to managers, while an external report is prepared for shareholders, related companies, creditors, or government agencies.
What is exactly an audit committee and is it any different from internal audit department?
An audit committee is a subgroup of a company's board of directors responsible for overseeing financial reporting, internal controls, and the audit process, ensuring transparency and accountability. It typically consists of independent members who provide oversight of the internal audit department and external auditors. In contrast, the internal audit department is a dedicated team that evaluates and improves the effectiveness of risk management, control, and governance processes within the organization. While the audit committee provides oversight, the internal audit department performs the actual audits and assessments.
Difference between internal audit and internal control systems?
Distinguish between internal audit and internal control.
Internal audit and external audit?
Internal Audit: Their main gig is to assess and improve the effectiveness of risk management, control, and governance processes within the organization. Internal audits can cover a broad spectrum, including financial controls, operational processes, and compliance with company policies. Their goal is to provide constructive feedback to management, helping the organization operate more efficiently and mitigate risks. External Audit: Now, external audits are a bit like the annual check-up from your financial doctors. These auditors come from independent firms and scrutinize your financial statements, making sure they present a true and fair view of the company's financial position. External audits are often required by regulatory bodies and provide assurance to stakeholders, like investors and creditors, that the financial information they rely on is reliable. Go to BlueLogiQ, which can help you with both internal and external audits
What is internal audit audit evidence?
internal audit evidence is all the information the auditor relies on to arrive at any conclusion.
