Objectives Of Internal Auditing

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EXECUTIVE SUMMARY As a part of academic requirement and completion of BBA program, we have been assigned to do a summer internship in the field of our choice. As per my interest in the field of finance,an internship in a CA firm was done. Internship in a firm named ‘Suresh Murali and Associates’ (SMA) located in Hyderabad was done, by being a part of the Internal auditing team, under the guidance of one of the partners of the firm i.e. Mr. Suresh Kumar Gupta. ‘Internal Auditing’ is one of the many services that SMA offers apart from a range of services in the field of finance, taxation and corporate advisory. This report has been divided into many sub segments explaining the different processes and terminologies related to the field of Internal…show more content…
The examination, monitoring and analysis of activities linked to a corporation's operation, together with its employee behavior ,business structure and information systems. An internal audit is intended to assess what a company is doing in order to spot potential threats to the organization's strength and profitability, and to form recommendations for justifying the risk associated with those threats in order to reduce cost. 5.2 Objectives of Internal Audit: The objectives of Internal Auditing are as follows: • To review and appraise the adequacy, correctness, and application of accounting , financial and other operating controls. • The extent of compliance with established procedures and policies must be ascertained. • To Ascertain the quality of performance in carrying out responsibilities. • To Recommend improvements of operations. 5.9 Why do we do Internal Audit? 1. Fixed Assets Acquisition /Capitalization: To ensure that: • Total capital expenditure is as per the budget approved • Quotations/tenders have been invited from at least three suppliers • Suppliers are selected based on the purchase procedure and in the best interest of the…show more content…
As part of the internal auditing team, this reports focuses on what internal audit is all about and its importance for the various small and big businesses. This report deals with how internal auditing is done and what are the various documents and reports that need to be prepared to complete the internal auditing of a firm. The report also explains the terminologies related to internal auditing. On the whole, this report will help to learn the procedures followed for internal auditing for the organizations. 10.2 Limitations of the study The main limitation of this study/internship was while collecting the data. Most of the data is confidential and the firms do not share it with the interns. They do not disclose the client data and their information with us as it is against their policies. That is why I am unable to show the format of the reports and documents prepared during internal auditing. Another limitation of this internship was time. The time span of 45 days was very less to learn internal auditing as it is a vast concept. The study was limited to only one department of the

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