Services of Internal Auditor to Management
The services of an Internal Auditor to the management on various lines are summarized below.
1. New Business Lines
The internal auditor due to his detailed knowledge of business functioning can advice the management in acquiring new business, in promoting new products, launching new projects and in undertaking expansion and diversification programmes.
2. Management by Exception
Management should generally concentrate only on vital areas, which need their direct attention. Particularly exceptional areas are more important and the management must focus its attention on them especially.
The internal auditor can help the management in locating exceptional areas, which need their attention. By this process the managers are relieved from the routine work and concentrate on special areas.
3. Management Control Process
The basic foundation of internal audit function is that it is detached from day-to-day regular operations. The internal auditors mainly concentrate on appraising and evaluating the effectiveness of controls established in the organization. Hence this function has become an integral part of the company’s overall control systems.
4. Availability of Services at all Times
The internal auditor is an employee of the organization. His services can be availed at any time for emergency services like investigation, detection of fraud or any other matter, which is significant from the business strategic point of view.
Services of Internal Auditor to Staff Members
The services of the internal auditor can be gainfully utilized as follows.
1. The functional staff is generally occupied with the routine affairs. During the course of work, they might have faced some difficulties and identified some deficiencies in the existing systems and procedures. Staff members can seek the help of the internal auditor to suggest suitable remedies to avoid the present deficiencies.
2. An independent appraisal of the present systems and procedures and the managerial control enables the management to become aware of the deficiencies in the present situation. Consequently remedial measures can be taken. This factor improves the efficiency of the employees and makes them to achieve peak performance.
3. Various specialist groups such as systems analyst, the corporate planner, and financial analyst can seek the help of the internal auditor.
4. The modern internal audit is concerned with all phases of business activities – whether management, operational or financial functional areas. The internal audit department, therefore, forms an excellent training ground for management development programmes and also for training new entrants.