Auditing services are often a necessity as well as a legal obligation for any business. An audit is an in-depth review of your business processes and internal systems, which is often a requirement for larger organisations especially. Auditing can be done internally, or the company might also choose to take help from other professional auditing companies. You can choose between an internal and external audit.
An internal audit is an independent view whether an organization’s risk management, internal processes, and governess are in place and working effectively. An internal auditor has to look at what is fundamentally necessary for the survival of the company of organization. They look at financial risks, statement, the way that employees are treated and the effect the company has on it environment.
On the other hand, the external auditors do not belong to the organization they are auditing. External audits, unlike internal auditing services are conducted by an independent body of auditors that reports directly to the shareholders of the company. The external audits conduct a thorough check of the financial management of the company in question. The appointment of external auditors is generally carried out by the shareholders of the company. In most of the cases the shareholders have a discussion with the directors of the company prior to the appointment of the auditors.
Internal auditors must be qualified, skilled, and experienced. An internal auditor reports to the highest level of authority in the organization. Usually it is the senior managers, board of directors of the board of trustees, the audited committee, or the accounting officer. These people have to be assertive, be willing to stand up for what is morally correct, and be counted.
Colin Smith & Co specializes in auditing services, as well as taxation, auditing and business advisory services across a wide range of markets and sectors for businesses both large and small.