What is Internal Audit?

To know what is Internal Audit you first need to know what is Audit, Audit is actually derived from a Latin word named “audire” which means “to hear” because in early times audit was done by hearing.
Here for any organisation Audit means an official inspection of an organisation’s financial data typically by an independent body.
So, internal audit means the methodology by an organisation to review their operations, books of accounts, processes and internal control. It helps the company to assess any risk early and on time, it also gives surety to the organization about the accuracy of their data and helps the external auditors also by giving them prior checked data.

Why is Internal Audit Important for Businesses?

There are several benefits of doing internal audit in the organisation and it also has several benefits which will be explained here: –
  • It helps in accessing risk of falls financial data and process which might be going internally
  • It helps in giving accurate and risk-free documents for the compliance of GST and Income Tax or any other
  • It also strengthens the core data of the firm to be rely on for the external audits
  • It also gives confidence and improves the trust of stakeholders and shareholders
  • It also helps in identifying the bottleneck, inefficiency of the business where we should work more or focus more

Documents Required for Internal Audits: -

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