Forex Ltd. has appointed CA Ravi as its internal auditor in the current financial year for a period of three years. Till last year internal auditor used to give detailed observations to the concerned departments for comm

Internal Audit has become an important management tool for the following reasons: Internal audit (IA) examines and assesses organisation's records and financial information, workflows, systems, and processes. Through the internal audit function, IA team will identify issues like compliance concerns, complete risk assessments, investigate internal or external fraud, and sometimes identify data inaccuracies in financial reporting. Internal Auditing is a specialized service to look into the standards of efficiency of business operation. Internal Auditing can evaluate various problems independently in terms of overall management control and suggest improvement. Internal Audit's independent appraisal and review can ensure the reliability and promptness of MIS and the management reporting on the basis of which the top management can take firm decisions. Internal Audit system makes sure the internal control system including accounting control system in an organization is effective. Internal Audit ensures the adequacy, reliability and accuracy of financial and operational data by conducting appraisal and review from an independent angle. Internal Audit is an integral part of "Management by System". Internal Audit can break through the power ego and personality factors and possible conflicts of interest within the organization. It ensures compliance of accounting procedures and accounting policies. Internal Auditor can be of valuable assistance to management in acquiring new business, in promoting new products and in launching new projects for expansion or diversification of business.