Corporate governance refers to all the processes and relationship networks which help to retain the control in corporations. The governance deals to tackle the concerns of a corporation’s stakeholders.The shareholders of a company, as well as the chain of customers and suppliers, are under the eyes of corporate governance.
The policies and control management of a business corporation is monitored by an internal auditing staff. The internal auditor panel serves to check with all internal activities of a certain corporation. Since all the internal events are catered by the auditing staff; the auditors are referred as internal auditors.
There are several important tasks and responsibilities of the internal auditing staff.Let’s have a look at these tasks and see how the auditing panel tackles with them.
Corporate governance has a major responsibility to have direct links with the company’s board of directors. The auditors ensure the regulation of corporation’s internal tasks. They are responsible to keep a check if the corporate processes are being managed as intended or not. Corporate governance also keeps a record of company’s tasks and processes to see if they could be improved or achieved in a more efficient manner.
The ultimate responsibility of internal auditors is to make sure that the corporation’s resources are being used effectively. The whole corporation is managed internally through corporate governance.
Detection of Fraud
Detection of fraud is an important task of the internal auditor. An act of fraud can break a corporation’s image and stability in a moment. Internal auditor keeps a strict eye over the possibilities of fraud in the company. Apart from company’s image, a situation of fraud can result in millions of lost revenue for the company and its stakeholders.
Therefore, it is really important for the internal auditor to maintain a firm stance in the company against frauds. The whole board of directors in the corporation depends upon auditor’s check. Any unfortunate activity (if occurs) is at the end of internal auditing staff.
Major Internal Audits
A company’s audits are performed throughout the year. These audits tackle different areas depending upon the charged tasks. Audits are performed in financial controls of the company. Internal auditor keeps the control of company’s financial processes. Other than financial controls, audits also focus on operational controls and processes of the company. Every operation that is being carried out within the corporation is under the charge of the internal auditor.
Furthermore, the audits also tackle with company’s information technology controls. An IT department is one of the basic and most important departments of a corporation.Auditors keep a fair check upon all these areas.
Following a Time Frame
The auditing staff works throughout the year to carry out their tasks. They are assigned a fixed time frame (of a year) to manage all areas of audits.Usually, an audit manager of the company derives an audit plan which is approved by company’s board of directors. The audit tasks are carried out by prioritizing them risk-wise.