- The main function of an internal audit function is to find out whether the internal control system is working successfully or not.
- The internal audit function usually carries out consistent and regular reviews of the strength and weaknesses of the internal control system and this will act as a deterrent against perpetrators of frauds.
- This unit also advices management to put up appropriate controls to remove existing weaknesses in the internal control system and how to improve on the strengths.
- By reviewing the company‘s actual performance against the budget on a continuous basis, and the follow up of any significant variances, the audit function will highlight the possibilities of errors or frauds in the business, if these variances are unaccounted for.
- The internal audit function ensures that proper books of account are maintained.
- This unit will also be involved in setting up procedures for new areas of operations and thus help in sealing off any loopholes which can be used to perpetrate frauds.
- The unit will also follow up the recommendations raised by the external auditor hence keep management on toes about implementing them.
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