Internal audit by a specialized internal auditor
The development of the global economy, accompanied by the collapse of multinational corporations (giant corporations) due directly to failures in internal controls, has increased the importance of internal audit in recent years. As a result, in many countries worldwide, including Israel, legislation has been enacted mandating the appointment of an internal auditor in certain corporations.
Internal Audit - The Right Hand of Management
The work of the internal auditor is sometimes accompanied by a negative stigma because in certain organizations, the internal audit function is seen as intrusive and even threatening. In reality, the opposite is true. Internal audit serves as an important tool in the hands of senior management with the goal of advancing and realizing the organization's objectives, assessing risks, and proposing viable solutions to mitigate them. The internal auditor's work is defined in an annual work plan that dynamically adjusts to various needs. At the conclusion of the audit process, the auditor presents a report containing audit findings and formulates relevant recommendations to strengthen areas of weakness within the organization.
The internal auditor's activity is independent of the audited entity and is carried out objectively. Through the extraction and application of lessons learned, internal audit assists the organization in achieving its goals, evaluating effectiveness, examining organizational efficiency, ensuring compliance with laws, and adhering to proper standards and integrity. It is important to note that effective internal audit relies on structured examination methods and procedures, emphasizing the importance of performing audits in accordance with standards set by the Institute of Internal Auditors in Israel.
Who is required to undergo internal audit?
The Internal Audit Law of 1992 stipulates that public companies, banks, insurance companies, and entities subject to the supervision of the State Comptroller or funded through the state budget are required to appoint an internal auditor.
The role of an internal auditor
The role of an internal auditor is to examine the validity of various activities within an organization, including:
- Assessing the effectiveness of internal controls
Identifying critical processes and weaknesses within the organization through risk assessment surveys - Reviewing decision-making processes and their implementation within the organization
- Examining the adequacy of information transfer between organizational departments
- Verifying the integrity and adequacy of cross-organizational processes, such as payroll processes
- Ensuring proper management, data integrity, cost-effectiveness, and efficiency
- Ensuring compliance with legal requirements and regulations applicable to the audited entity
Professional internal auditor in your organization
As part of our comprehensive service offerings, Steinmetz Aminoach & Co. CPA provides internal audit services both as internal auditors and as support for internal auditors in various entities such as health funds, investment houses, municipalities, associations, public and private companies, and more. Our internal audit services are delivered by professional employees and experienced accountants with extensive experience, combining procedural and professional knowledge, business insight, and financial accounting experience. Additionally, our department includes personnel with specific training in information systems and data security.
Our internal audit services are conducted in accordance with the Companies Law, Internal Audit Law, Associations Law, guidelines of the Institute of Internal Auditors, and other relevant legislation and regulations applicable to the audited entity.
Contact us to tailor a professional audit plan for your organization based on its nature and scope of activities.
