Internal audit services are an important tool for improving performance and risk management in an organization. These services aim to assess and review established processes and procedures within the organization in line with strategic objectives and applicable legal and legislative standards.
Internal audit also ensures operational processes and compliance with company policies; internal audit assists the external auditor during the execution of the audit and reduces the burden required to perform the audit because internal control systems are activated by internal audit management.
Internal audit is divided into two basic types:
1- Financial audit:
It is a review to verify the accuracy of financial and accounting data, by verifying the accuracy and classification of the data.
2-Review of production and efficiency, which are divided into three main types :
- Performance review
- Organizational review
- Special assignment review
This type of audit examines and evaluates the Company's business performance as a whole for efficient and effective use of resources against several objective efficiency criteria
This type of review involves reviewing the stages and procedures of production and reviewing the quality standards applied to different stages of production within the company. In addition to measuring the extent of interdependence, interaction and coordination between the different company departments.
Why do companies need internal audits?
- The ability to manage risks effectively.
- Enhancing the efficiency and competitiveness of business entities’ performance.
- Strengthening internal control.
- Ensuring the efficiency and effectiveness of Al-Riqa systems