Internal audit is not a pillar of the sentencing system, but an indispensable part of fair and objective management
When it comes to internal audit in our country, criminal sanctions such as open capture, punishment, dismissal come to mind in general. It is also very natural that this should be the case. Because companies are always audited by the public. Sometimes a tax inspection is encountered, sometimes audits by institutions such as SSI are encountered. In these inspections, public sanctions also come into play and both criminal proceedings are applied and the individual fulfillment of the issues to be corrected is requested. Here there is a question of public supervision from the point of view of full compliance with the legislation, public power is used.
However, when it comes to the private sector’s own internal audit, it can have completely different purposes.
Legal regulations of each sector are available. The owner and managers of the company are obliged to implement these regulations. If the public man finds the malfunction, he may face criminal proceedings. However, if its internal audit mechanism catches it, the risk can be eliminated by correcting it immediately. So no one gets hurt either.
Internal audit has different purposes. For example, it can be checked whether the company is working in accordance with its internal regulations. Or, it can be examined whether the company is working in accordance with its budget targets. Looking for glitches here is not the main goal. Because the main purpose of internal audit in the private sector is to ensure fair management and increase efficiency at work.
If the maturity target set for the purchase of a company is not reached and this situation is overlooked, the company may be short of cash. The same applies to sales. If the firm sells for a longer term than the term it is aiming for and the management does not notice this, that is, it focuses only on turnover, the firm may even have difficulty paying salaries.
Internal audit sometimes plays the role of mediator. It can directly contact the management on many issues whether employees can reach the top management or not. Thus, the solution process is accelerated.
Internal audit focuses more on whether the system is working harmoniously, while trying to identify the elements that cause the system to work inefficiently. Thus, the distribution of work between employees dec be more equitable. In addition, the internal audit also identifies the obstacles to achieving the goals one by one and reports them to the management.
People in internal audit are not targets. Rather, the system and its functioning are the goal. The desired result is to see that the system works without interruption. The administration requests such a review with an independent eye to make sure of this. It is essential that the internal audit is objective and impartial. People who can conduct this type of audit are carefully selected.
Internal audit also ensures that very serious problems that may occur in the future that companies do not notice, but may cause serious problems in the future, are prevented by timely identifying errors or inaccuracies that may lead to serious problems and resolving the issue with the relevant department.