Internal Control Audit Consultancy

İç Kontrol Denetimi Danışmanlığı

Internal Control Audit Consultancy…

Protect assets, conduct business in a regular and efficient manner and in accordance with Company policies, prevent error and abuse, maintain complete and accurate accounting records, and produce reliable and timely financial information. A system of internal controls used by management to achieve its objectives. methods and these methods. The procedures are called internal control systems.

Internal Control Audit Consultancy

Internal audit is considered one of the most important functions in extending the sound life of any company operating in today’s competitive and economic conditions. This function, which includes activities related to the monitoring of financial and non-financial business processes, measures the effectiveness and efficiency of an organization’s internal control system and helps the organization to effectively and effectively use its stated objectives and its resources. It is a process intended to help you achieve Efficient. Operational audit, which is the main reason for the financial and accounting process of a company, is very important compared to financial and accounting audit.

Changes in the business processes in which a company’s main activities are conducted have a great impact on the financial situation of the company. Therefore, the number one driver of business growth or contraction can be defined as the establishment and proper application of controls in business processes according to activity. This study explores the importance of operational auditing, which is part of internal auditing, i.e., examining non-financial activities and correcting deficiencies and malfunctions identified in the company’s internal control system in a timely manner with appropriate suggestions. was emphasized. In addition, we examined the impact of the effectiveness of existing internal controls on audits.

The Purpose and Scope of Internal Control

The purpose of internal controls is to provide reasonable assurance about the effectiveness and efficiency of operations, increase the reliability of financial information, and comply with specific laws and other regulations. An internal control system covers all activities of an organization, but the number, type and style of controls depend on the objectives of the organization and the risks it faces. Internal controls cover all operational, technical, commercial, financial and administrative activities of a company and are not limited to accounting and financial reporting controls.

Basic Features of Internal Control System

The characteristics of internal control in the internal control system established by the Public Financial Management and Control Law No. 5018 are determined as follows.

  • Internal control activities are carried out continuously and systematically and within the framework of the management’s management responsibility.
  • In the activities and regulations of internal control, primarily those who take the risk are taken into consideration.
  • Responsibility for internal control covers all duties involved in the transaction process.
  • Internal control covers all financial and non-financial transactions.
  • The internal control structure is evaluated at least once a year and the measures to be taken are determined.
  • Good financial management principles such as compliance with legislation, transparency, accountability, economy, efficiency and effectiveness are taken as basis in regulations and practices related to internal control.

General Objectives of the Internal Control System

Protecting Business Assets and Preventing All Kinds of Losses

Physical assets within the entity are suitable for theft, misuse, destruction or unnecessary use. Management has to create control elements to prevent these negativities. At this point, the main purpose of the internal control structure emerges.

Ensuring the Accuracy and Reliability of Accounting Data

Accounting data is an important basis for management decision making through the information system in the business. The way to make a correct decision is to obtain accurate and honest information. For some reason, there is a possibility that the accounting data is not accurate and honest. Therefore, the policies and procedures set in the internal control structure aim to ensure that this information is as accurate and honest as possible.

Increasing the Efficiency of Business Activities

One of the main objectives of management is to ensure the efficient execution of commercial activities. The degree to which an enterprise achieves its goals and objectives, which it set at the beginning, indicates its effectiveness in its activities. The created internal control structure aims to maximize this efficiency.

Ensuring Adherence to Management Policies

The management constantly informs its employees about the rules that they must abide by. However, there is always doubt as to the level of adherence during the implementation phase. The controls to be created within this scope aim to ensure that the employees comply with the management policies.

Special Purposes of the Internal Control System

The internal control system also has more detailed specific objectives to assist auditors in its application. These purposes can be listed as follows;

Validity: Due to its internal control structure, it should not allow unrealistic transactions to be included in the books and accounting records. In addition, transactions must be carried out in accordance with the authorization. Authorization can be public or private. The limits of authority should be determined in a written contract.

Completeness: All valid transactions should be recorded. The internal control system should prevent transactions from being recorded.

Records availability: Actual transactions are properly recorded. Records are recorded, classified and evaluated over a period of time. In the evaluation, internal control procedures are used in order to prevent errors that may occur in the amounts recorded at various stages and in the calculations. Compliance with generally accepted accounting standards is investigated. Classification requires that the chart of accounts be prepared accordingly in order to present the financial statements accurately and completely. On the other hand, timeliness requires transactions to be recorded when they occur.

Protection of assets: Independent dedicated personnel should be assigned to the registry function for the physical protection of assets. Only certain personnel should be allowed direct access to assets and indirect access to assets such as records and documents should be classified with appropriate authorization measures.

Reconciliation: Main accounts and subaccounts at certain time intervals; Assets and liabilities and recorded values ​​should be compared, any difference should be investigated and necessary corrections should be made.

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