Internal Audit which is very important for every organisation, often referred to as management controls, in the broadest sense includes the plan of organization, methods and procedures adopted by management to meet its missions, goals and objectives. Internal controls also serve as the first line of defense in fraud and violations of laws, regulations and provisions of contracts and agreements.
Some of the benefits of having a good system of internal controls are:
- Helping protect assets and reduce the possibility of fraud
- Improving efficiency in operations
- Increasing financial reliability and integrity
- Ensuring compliance with laws and statutory regulations
- Establishing monitoring procedures