What Is An Internal Audit By An Accountant and Why Do I need One?
An internal audit is held by an accountant to observe your company’s financial records. It is important to have this done on a routine basis to ensure company standards are being met. It holds accountability for employers as well as employees who may have access to such records. It will help shape new ways to hold these procedures at a higher standard and will give you assurance that such information is being accurately protected. Joyce CPA, LLC in Cutler Bay, Florida can give you some insight on what this process is and why you need one.
What is an internal auditor?
A certified internal auditor is hired to assess a company without bias or familiarity. They have full knowledge of the auditing process, and therefore, the rules in which a company is expected to comply. The auditor inspects the company independently and is a valuable asset to maintain your company’s integrity. External auditors are different than internal auditors in that they look at financial statements to assess risks that are already present within an organization. They tend to hold somewhat of a bias as they are typically acting on behalf of stakeholders within the company, and therefore hold higher interest in the company’s overall financial stability and cash flow. Internal auditors work with the company to assess areas that may need improvement.
What does the accountant do?
The auditor works as an internal auditor to analyze what steps are being taken to ensure financial stability. They look at risk management processes and point out errors in the execution and give suggestions on improvement. They also look at what management does to reduce these risks.
The certified internal auditor will collect and analyze financial documents to ensure they are following federal compliances. They can offer suggestions to mitigate risks and even help in reducing risk management costs. Once the audit is done, the senior auditor presents the information and any potential flaws to the company board of directors. From there, it is the company’s responsibility to implement any changes. The Chief Executive Officer will analyze and decide on whether or not making changes to processes and systems in necessary for the company’s current needs.
Why do I need an internal audit?
An auditor is an outside professional who will be more likely to point out any flaws in your company’s financial procedures. They are trained to find any and all procedures that are outside of compliance. As mentioned, they will make suggestions so that your company is not held liable, and you will be able to administer changes in proceedings before any potential fines are given to the company. They can even save you money on fixing any risk problems. An accountant is a reliable source to ensure your company is running efficiently and smoothly, in special regards to your financial process. They essentially keep you risk management low and add an overall safeguard to your company compliances.
If you need to schedule an audit with a certified internal auditor, contact Joyce CPA, LLC in Cutler Bay, Florida.