Internal audit means a continuous critical review of financial and operating matters of a business. In other words we can say that the audit of a business adopted or conducted by the business itself for a continuous basis. Internal audit is done by the inside or internal staff appointed specific or particular for the audit purpose.
Objectives of internal audit:
Though the objects of internal audit may differ from business to business but following are the important objects of internal audit.
Removes the errors and frauds:
As the accounts of the business are checked on continuous basis by the auditors, so it removes the chances of frauds and errors.
Preparation of annual audit:
It is very helpful or useful for the preparation of annual audit so before the annual audit mistakes can be removed.
Provides information about the system of accounting:
Internal audit give surety to the management of the business that check and internal system of accounting is effective and properly implemented.
Authorization of transaction:
It also examine that all transaction are properly authorized.
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