How an accounting system can improve internal audit planning

Internal auditing provides business owners with a useful tool to assess how well their company is running and what areas are in need of an adjustment. Using an accounting system to record income and expenditure will greatly benefit the planning of an audit and the audit itself. 

It is important to plan an internal audit before the process actually begins in order for it to run smoothly. You need to decide which areas of the business are going to be analysed and it should be clear what you are looking for.

An accounting system can help you to determine what needs to be audited

There are two stages in planning an internal audit. The first takes place on a macro level and the second on a micro level. These stages of planning help an auditor to know which aspects of a company need to be analysed and what methods are required for it to be successful.

Macro-level planning looks at the larger workings of a business in order to understand where its problem areas are. Once these areas have been ascertained, micro-level planning analyses what skills and degree of management co-operation are necessary for the audit to move forward.

An accounting system is useful at both levels of planning. It keeps a business’s finances in order and enables problem areas to be identified easily. If there are any discrepancies in the business’s finances, or if one area of the company is not generating the expected income, an audit should be done to understand why.

An internal audit is a useful tool for identifying your business’s problem areas

Internal auditing as a practice is not designed to place blame on anyone, but rather to identify a problem area in a business and work out how it can be resolved. Perhaps more staff members need to be hired or existing staff members might require more training.

There are many different issues pertaining to the running of the business that become visible during an audit and therefore many solutions to these problems. An accounting system provides a method of knowing your business’s financial status at a glance. Knowing what financial resources you have at your disposal can make it easier to find a solution to your company’s newly discovered concerns.

Streamline the auditing process

Since internal audits are done by an in-house team, it is essential that your audit procedures are streamlined and run effectively. Your audit team should be trained and have an extensive overview of the department that is being audited.

Accounting systems, such as those available from QuickBooks, are an essential tool that can alert a business owner to problem areas and help to resolve them quickly.

Peruse QuickBooks’ range of  accounting software solutions and find the right system streamlining your internal audits.