Key Roles and Responsibilities of Internal Auditors

Nov 2021

A business is expected to make profits for its investors and owners and to accomplish these tasks the business must examine and analyze its financial condition. This is done both by the Accountants and the Auditors of the company. But more stress is given to the work done by the auditors as he is the one who actually examines the work of the accountant.

The work performed by the internal auditor is very crucial for the business as the auditor analyses and evaluates the various operations performed by the business. It is the duty of the internal auditor to find and analyses relevant and accurate information about the company. After the analysis of the information, the auditor prepares an audit report which is then shared by the investors and shareholders of the company. This report comprises all the necessary information which will help the investors to make an informed decision. Read: Need of Internal Audit

Roles and Responsibilities of Internal Auditor

There are certain roles and responsibilities which have to be performed by an internal auditor. These include the following:

  1. Examine and Analyze all the financial information of the company

The first and foremost responsibility of the Internal Auditor is to provide relevant and accurate financial information about the company and then analyze this information to further simplify it. This will assist the management to fully understand the current trend of the business so that it can compete with the competitors in the market.

  1. Provide objective insights to the Company as well as the Investors

The information analyzed by the business will help both the management as well as the investors, both current and potential. As the internal auditor’s auditor is not affiliated with any organization or has no ulterior motives, the information provided by the auditor in the audit report will be accurate based on which both the auditor as well as the investors can make an informed decision.

  1. Examine if the company is Compliant

Compliance plays a very important part for the companies in the present business environment. The majority of the governments are making more laws and are making sure that the businesses stay compliant with the rules and regulations of the jurisdiction. The Internal Auditor will lay out all the rules and regulations to be followed by the business.

  1. Assess and, if need be, alter the various functions of the business

As the internal auditor will be analyzing all the reports prepared by the accountant, the internal auditor will be in a better position to understand the current financial scenario and if any more business operation needs to be done. The auditor will also be able to decide if all the business operations are necessary for the business.

  1. Prepare a future plan for the business

Every business has the intention of sustaining for the longest period of time possible. This is why the business needs to constantly review the various financial information of the company. This will allow the management to prepare plans for the future of the business. This will also allow making changes in the future business plans if any deviation from the estimated trends has occurred or in case of any unforeseen situation.

The above are some of the Roles and Responsibilities of an internal auditor of a company. If the internal auditor does not perform the audit diligently, then the business can suffer the consequences. This is why it is suggested that the management of a company should choose expert and professional Auditors who can take care of the company.

If you are looking for Internal Audit services in the United Arab Emirates, then you can have a look at the services provided by JAXA Chartered Accountants. The experts at JAXA also provide various other services which will help in the growth and development of the business. The services include Auditing services, Accounting Services, VAT and Tax related Services, and many more. For more details about the services, feel free to Contact Us. We will be happy to help.