Internal Audit


Internal Audit

Audit history

In explaining the history of auditing, it can be said that internal auditing has been used in businesses for many years, and the use of internal auditing can be seen since the beginning of accounting (read more: What is accounting).


For the first time, the Association of Auditors was established in 1941 in Altamonte Springs, a city in the state of Florida.


Internal audit was used in Iran for the first time by Iran-British Oil Company, which existed in Iran before the First World War.


In the history of internal audit in Iran, it can be mentioned the establishment of the Association of Internal Auditors of Iran in 1391, which was established with the cooperation and support of the Securities and Exchange Organization.


Who is the internal auditor?

Auditing is one of the branches of accounting, and someone who has mastered all the affairs and principles of auditing can do internal auditing. The internal auditor can be one of the personnel of the same organization or hired by an accounting company to perform internal audit work.


In general, in the definition of an internal auditor, it can be said that it is a person or natural or legal persons who have mastered the principles of auditing and are employed by the organization for a period of time.


The internal auditor can communicate with the management of the organization so that he can receive all the information of financial transactions and must provide financial and audit reports to the managers of the organization in order to prevent mistakes and abuses.


What are the duties of internal audit?

To work in the internal audit department, the most important issue that arises is what are the duties of internal audit and what should an internal auditor do?


The duties of internal audit are summarized in the following cases, which include:


Control of organization contracts

Supervising the management of the organization's financial resources

Validation of expenses incurred in the organization

Matching the payments made with the progress of the organization

Matching financial reports with existing documents

Evaluation of controls made in financial statements

Controlling the activities carried out in the accounting department of the organization

Checking the implementation of employment rules (if you are looking for employment, you can refer to the accountant employment page and communicate with employers)

Data analysis of financial reports

Monitoring how financial management is done

Checking the accuracy of data and information received from different financial departments of the organization

Supervision of documenting financial documents of the organization

What are the duties of internal audit?

How to conduct an internal audit

So far in the article, you have understood what internal audit is and its importance, but the most important issue that arises is how to conduct internal audit.


The way of conducting internal audit is different in different organizations and in some organizations the internal audit is done after the completion of financial affairs at the end of the financial period, but in some other organizations the handling of internal audit matters is done during the completion of financial affairs and This department continuously monitors the work of other areas and reviews the financial activities.


In order to conduct an internal audit, an auditor must examine two aspects of doing things and have control over them, which are:


Mastery of accounting skills: Since an internal auditor must be able to supervise all the work done by accountants, he must have the necessary mastery of accounting principles.

Analyzing data and checking all financial affairs and the ability to find all the mistakes made and planning to solve the created problems are other things that an internal auditor must master.

The way of conducting internal audit is that an auditor must follow a path to achieve success and bring the organization closer to its goals. This path is summarized in the following:


Planning and targeting in internal audit

Formation of internal audit expert team

Internal financial control of the organization

Preparation of list of data and financial information

Preparing a planning list to deal with internal business audit matters

Approval of the work done by the head of internal audit, senior manager and expert of the company

Implementation of the final internal audit program