Types of internal audit

The internal audit is divided into two main types:

Financial review

- Review production and efficiency 

First - the financial review

The financial review means verifying the extent to which those responsible for implementing the company's activities comply with the policies and regulations of financial and administrative procedures adopted by the company's senior management as a method for performing financial business and then deciding the degree of compliance with them. The senior management of the company for the purpose of instilling confidence in the data contained in these reports and in a manner that helps in making decisions based on them. فوترة الكترونية

In this sense, it is sometimes called a procedural or regulatory review (as it is concerned with the extent of compliance with the implementation of regulations and decisions), a review of the extent of compliance, or a financial review.

To help the reader, a distinction is made between two types of financial audit:

Financial review (pre-disbursement review)

One of the stages of internal self-control, which requires that the business be reviewed before or during its implementation by assigning the financial audit in the financial affairs to review the work of other departments, in order to verify the integrity of procedures, the correctness of accounting entries, the completeness of documents, and the approval of the competent authority for implementation. All financial operations, and therefore it is called the financial review before disbursement.

Financial review (post-disbursement review)

They are applied after the implementation of the transactions according to a drawn-up plan and at a test rate (i.e. samples). These transactions are examined to ensure that the internal auditor of the company’s senior management confirms that the transactions are carried out according to the foundations, regulations, systems and procedures established and established in a way that leads to achieving the company’s objectives, in addition to providing guarantees regarding the submitted financial data and reports. to the company's senior management.

Second - review of production and efficiency

This type of review seeks to examine and evaluate the performance of the company's business as a whole in order to achieve efficiency and effectiveness in the use of available resources in the light of several objective criteria for evaluating efficiency. This audit is considered the natural evolution of the financial audit, although it exceeds it in terms of scope. For example, while the financial audit is mainly concerned with financial data and reports, such as the statistical analysis of the ages and values ​​of the balances of customers’ accounts that have not been paid on their dates and highlights them as pending or dues that must be collected or the necessary provision made for them. The review of operations and efficiency in presenting and providing the company's various products leads to a comprehensive evaluation of how the activities and systems performed by the company are performed. This type of audit also includes a review of production stages and procedures and a review of the quality standards applied to the different stages of production.

Accordingly, the process audit is divided into three main types:

1- Job performance review

It is mainly concerned with conducting an evaluation of how all the main functions in the company are performed, which may result in the discovery of pivotal problems in the performance of the various activities in the company, that is, it is concerned with evaluating job performance or discovering any defects or deficiencies in performance and how to remedy such deficiencies and not monitoring defects or shortcomings only.

2- Organizational review

It aims to assess the extent of the efficiency of communication and cooperation between the various departments and units in the organizational structure of the company, and the extent of the ability of these departments to exchange information, whether with other departments or the senior management of the company, as the organizational review seeks to reach the reasons for lack of cooperation or ineffective communication between departments in order to Developing and opening channels of communication that allow the flow of information within the company quickly and efficiently, identifying the reasons for the shortcomings in the exchange of available information, and working to overcome them.

3- Reviewing special assignments

Related to reviewing and examining additional issues assigned to the internal audit department by the company's senior management.

Special assignment reviews are the same in scope or style as job performance reviews and organizational reviews, but differ only in timing. While both job performance review and organizational review are implemented according to an integrated audit plan approved by the company's senior management, the review of special tasks is carried out in response to management's request or when needed. business or the high percentage of the user of the production requirements, but rather looking at the reasons that led to the existence of the phenomenon and suggesting treatment methods for each of them.

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