Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations (What is internal auditing?, 2010). Internal accounting control is a series of procedures designed to promote and protect sound management practices, both general and financial that will increase the likelihood that: * Financial information is reliable, so that managers and the board can depend on accurate information to make programmatic and other decisions * Assets and records of the organization are not stolen, misused, or accidentally destroyed * The organizations policies are followed
* And government regulations are met (Internal Accounting, 2011). It is important to have an internal accountant available to help instill these controls and ensure compliance with Generally Accepted Principles.
Internal Accountants Management accountants and internal auditors are both imperative to a company to help with internal controls. Management accountants study and interpret business numbers, and decide on how money should be spent and advise management on key business decisions (Career: Management Accountants and Internal Auditors, 2011). Internal auditors check the records of management accountants to make sure they are accurate and that the controls are in place to protect against fraud and waste (Career: Management Accountants and Internal Auditors, 2011).
Internal Auditor The internal auditor recommended should have a minimum of a bachelor’s degree in accounting or a related field. This person should also have experience in information technology, environment and compliance if possible. The perfect candidate should also have prior experience in verifying effective organizational internal controls to ensure that records are accurate and the controls are adequate (Accountants and Auditors, 2011). He/she should also be able to recommend and review controls for the organization’s computer systems to s=ensure their reliability and integrity of the data (Accountants and Auditors, 2011).
Conclusion Internal audit standards are mandatory requirements consisting of: * Statements of basic requirements for the professional practice of internal auditing and for evaluating the effectiveness of its performance * Interpretations, which clarify terms or concepts within the statements (International Standards for the Professional Practice of Internal Auditing, 2010) The internal accounting position should be filled by a potential candidate that works well with others and has knowledge of the business itself.