The importance of internal auditing
The importance of internal auditing has increased with the expansion of the activities carried
out by the establishments, and their continuous efforts to evaluate these activities, develop
them and increase their productivity, and also in view of the services provided by the
internal audit function of the administration represented in:
• Preventive services: ensuring adequate asset protection, protection of policies and
plans from deviation in application;
• Evaluative services: measuring and evaluating the effectiveness of internal control
systems, and adherence to management policies;
• Development services: Provide suggestions for the development and improvement
of systems within the establishment.
Internal audit objectives:
1. Purpose of protection:
Where the work of checking and matching between the actual performance and pre-set
• Company policies
• Accounting procedures
• Internal control systems
• Records of the establishment
• Value of establishment
• Operating activities.
Internal audit helps to detect and identify deviations and take them into consideration
during the performance of activities and in subsequent stages.
This objective also includes maintaining the integrity of the following matters and ensuring
their application: the company's assets of all types, the financial and accounting systems and
procedures, the policies and plans adopted in the company, the records and documents and
the regular and electronic files approved in the project.
2. Objective of building and development:
Means suggesting appropriate steps to correct the results of examination and conformity
(deviations) and advise management. The Internal Auditor, in addition to reviewing the
accounting and financial audit, shall:
• Achieving adherence to established policies, procedures and plans
• Verifying the integrity of asset protection procedures
• Proposal to improve and improve performance.
The primary purpose of the internal audit is to assist the members of the administration in
carrying out their duties and responsibilities by the internal auditor conducting the
examination and evaluation, and giving management advice and comments on the
processes being reviewed.
Based on the above, the internal audit profession is currently receiving significant global
attention and support from boards of directors. Studies and statistics have shown that
international institutions lose about 6% of their average annual income due to fraud and
misuse, and also proved that many losses were possible Avoid them if there were effective
audit departments that could highlight weaknesses in internal control systems and fail to
manage risks effectively and efficiently.
Despite the inevitability of its independence from the executive management of any
institution; however, the internal audit department is an important and complementary part
of the organizational structure, but it is one of the most important departments in the
institutions, although it is not a profit producing departments.
As the board of directors, it is the only independent entity in the institution that can provide
reasonable assurance to the Board that the institution is moving in the right direction to
achieve the objectives and strategies set by the Board of Directors.
With frequent economic crises, corruption, misappropriation and misuse of assets, boards'
and audit committees have focused on activating and strengthening the internal audit
profession, in order to mitigate many of the risks associated with managing the business of
The perception of the Audit Department as a financially costly management of the
institution has changed to the fact that it is an important, effective and necessary
management in order to protect the institution from high risks, as many inside and outside
the institution attempt to manipulate and fraud.