Internal audit
Internal Audit
For purposes of the International Auditing Standards, the internal control system (ICS) is developed, implemented and maintained to reduce business risks that jeopardize the achievement of any of the Company's objectives relating to:
- reliability of the Company's financial statements;
- effectiveness and efficiency of its operations;
- compliance with applicable laws and regulations.
An approach to the development, implementation and maintenance of ICS depends on the scale of business, the organizational structure and identity of the company's activities.
In view of the above goals of the ICS, the internal audit functions may include:
- monitoring the efficiency of ICS procedures;
- study of financial and management information;
- control of cost effectiveness, efficiency and performance;
- monitoring compliance with the legislation of the Republic of Kazakhstan, as well as internal policies and regulations;
- development of internal policies and regulations;
- assessment of the reliability of information provided to the management system;
- control over settlement and payment discipline;
- checking the availability, condition and security of the company's property;
- advising the company's personnel on all aspects within the competence of the internal audit service;
- interaction, if necessary, with external auditors, representatives of tax and other state control bodies;
- preparation of methodological recommendations and accounting manuals (tax accounting, management accounting manuals) for internal use by the company's personnel;
- and others.
To organize the internal audit service is possible through:
creation of own internal audit service;
delegation of internal audit functions (in whole or in part) to external consultants (outsourcing).
ARBAudit performs functions of internal audit, including, on terms of full or partial outsourcing. In addition, partial outsourcing can consist both in the performance of individual functions of the internal audit service, and in the setting up or testing the ICS completely or in separate elements. Elements of such outsourcing can be, for example:
testing of accounting and tax accounting, including for companies with complex organizational structure, checking the adequacy of the information collecting and documenting from the moment the transaction initiated to its inclusion in the financial and (or) tax reporting, in conjunction with all structural divisions of the company;
inventory of stocks and fixed assets, including testing of the internal control system for safety, target use, and efficiency use of assets;
testing of the procurement system for compliance with legislative requirements and internal regulations;
verification of payment discipline and others.
The main advantages of attracting independent specialists in relation to internal audit services, are:
- complete independence, impartiality and fairness;
- experience and practices gained in providing services to various companies.
Specialists of ARBAudit have considerable experience in providing internal audit services for large companies, including subsoil users, for example:
- setting up an internal control system at the field;
- implementation of business processes for the movement of stock and fixed assets in the field and outsourcing of internal control over compliance with these business processes until their full implementation;
- inventory of stock and fixed assets at the fields, including testing of the internal control system for their safety, control of capital "tied up" (illiquid stocks);
- testing and setting up accounting and tax documents for subsoil users, etc.
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