Bangladesh Professional: Taxation

Bangladesh Professional: Taxation: "Tax Rate (Assessment Year- 2010-2011) : Other than Company : For individuals (other than female taxpayers, senior taxpayers of 65 years a..."

Objective of internal audit

The role of internal auditor has expanded in recent years as internal auditors seek to monitor all aspects (not just accounting) of organization, and add value to their employee. The work of internal auditor still prescribed by the management but it may cover the following broad areas:

• Review the accounting and internal control system
• Examination of financial and operating information
• Review of the economy, efficiency and effectiveness of operations
• Review of compliance with laws, regulation and other external requirements with the policies and procedures
• Review of the safeguarding of assets
• Review of the implementation of corporate objectives
• Identification of significant business and financial risks, monitoring the organization risk management policies
• Special investigation into particular areas, for example suspected fraud

                                                                                                                      

Internal Audit

Internal Audit

Internal audit is an appraisal or monitoring activity designed by the management and directors for the review of the accounting and internal control systems as a service to the entity. It functions by, amongst other things, examining, evaluating and reporting to management and the directors on the adequacy and effectiveness of the components of accounting and internal control system.

Why needed:

Internal audit departments are normally a feature of larger organization. The need for internal audit will depend on:

• The scale, diversity and complexity of company’s activities
• The number of employees
• Cost benefit considerations
• Changes in organizational structures, reporting process or underlying information systems
• Changes in key risks
• Problems with internal control systems
• An increase no of unexplained or unacceptable events

Example: Cynthia Cooper who was the vice president internal audit dept. of World Com and discovering the fact that billions of dollars of operating costs had been capitalized turning a $662 million loss into a $2.4 million profit in 2001.