Administration Manual - B.E.S.T. Undertaking.

1.2
Objective
1.3
Functions
1.4
Internal
and
Statutory
Audit
1.5
Personal
Relations
financial matters. It also deals with matters of an
operating nature.
The overall objectives of Internal Auditing is to assist
management, including heads of Departments/Branches
in the effective discharge of their responsibilities by
furnishing objective analysis, appraisal, recommendations
and pertinent comments of activities reviewed.
From the above, it is apparent that the functions of
Internal Audit are reviewal and appraisal of management
policies, plans and procedure and evaluation of their
performances apart from accounting functions and having
reviewed, to report to management executives the quality
of performance or short comings in any area of operation.
Therefore, Audit must be the basis of service to
management resulting in economies on various activities
of the organization.
Internal audit is vastly different from Statutory Audit; the
former is appointed by Management, the later, in public
limited company, as required by statutes. Internal Audit
is a continuous audit through out the year and carries out
not only book audit but also reviews policies, plans,
procedures, spot checks on staff working at various size
and ensures proper utilization of main and materials. On
the other hand Statutory Audit carry out book audit once
a year for certifying profit and loss account and the
balance sheet. The Internal Auditor is an employee like
any other in the organization and is responsible to
management directly unlike Statutory Auditor who reports
to the share holders.
In case of the Undertaking Municipal Chief Auditor (MCA)
is the Statutory Auditor who is suppose to audit the
accounts of the Undertaking as well as the other business
transaction of the Undertaking.
In the process of appraisal, deficiencies in working which
may include weak controls, avoidable wastage, fraud,
inefficient methods of operating are likely to be high
lighted.
The Internal Audit Staff in their day to day working should
maintain close and cordial relations with the rest of the
staff to remove any misgivings or apprehensions in their
minds. The Internal Audit staff should not be aggrieved in
case his recommendations are not implemented as it is
but natural, though wrongly so, to consider such
recommendations as unsolicited advice dispensed to all
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