Internal Audit

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The spreading of the activity, the complexity of procedures and the increased company size makes  the presence of internal control necessary in a company or organization. Particularly important is that internal control should be done by   trained auditors that meet the qualifications and are capable to apply  the  plan of internal audit, because otherwise the results of the internal audit could be ineffective. If entire plan of  internal audit is not applied, the company management could  take hasty decisions with negative results for the procedures and the operation of the organisation.

 

Internal audit work plan

 

1. Audit plan preparation– consultative work

2. Recognition of company business - Risk Identification in cooperation with the company ‘s management

3. Existing processes identification

4.Identification and Evaluation  of control points

5. Preparation, Creation and Distribution  of  test results report

6. Follow Up

 More specifically:

 

1. Audit plan preparation– consultative work

 

At this stage the purpose and scope of work will be determined .

 

2. Recognition of the company's business –

Risk Identification in cooperation with the company ‘s management 

At this stage we shall  identify the business activities of the company, as well as the risks that characterize them, through material that will be provided by the auditors and through interviews carried out with the company's executives.

 

 

The identification of business risks is carried out in cooperation with the company’s management.

 

3. Existing processes identification

 

We shall recognise, understand and describe briefly the existing operational processes through interviews with managers and/or other authorized officials, so as to obtain a clear view of the policies and procedures applied by the company, in conjunction with other systems, such as the implementation and operation of structures quality certification under the requirements of  ISO 9001.

 

To obtain sufficient information concerning  policies and procedures of the company, interviews with all management team will take place.

 

These interviews will facilitate the understanding of the company's internal control system (policies and procedures), while necessary  material for the completion of the audit will be collected.

 

4. Identification and Evaluation  of control points

 

At this stage we shall  identify and evaluate the control points (safeguards) that the company has established in order to ensure that all activities and sections of the company operate in accordance with the policies and procedures.

 

Extensive interviews will take place, with  responsible managers or other authorized officials for certain trading circles of the organisation, while a small sample will be collected, to verify the workflow (walkthrough tests).

 

Specifically,  the following circles will be inspected:  

 

• Commercial and credit policy

• Supplies

• Project Management

• Production

• Cash and Banks

• Fixed assets

• Stocks

• Personnel and payroll

 

5. Preparation, Creation and Distribution  of  test results report.

 

Preparation of internal audit results report, which will include all issues and observations, the relative risks that characterize the procedures, auditor’s  comments and suggestions.

 

6. Follow Up

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