Internal Audit Services
VillageHut Accounting Conducts Internal Audits including review of existing business processes and strategies, as well as implementation. We also evaluate and advice on policies, procedures, process enhancements, and any management requests for reviews of areas considered mutually critical according to the International Standards for the Professional Practices of Internal Auditing (IPPF) Standards
- Internal Control Systems development and checks
Internal controls system includes a set of rules, policies, and procedures an organization implements to provide direction, increase efficiency and strengthen adherence to policies. the plan of organization and all of the coordinate methods and measures adopted within a business safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to preserved managerial policies.
Three elements of the internal control system are:
- Environment control: The attitude, alertness, and work-zeal of directors, managers and shareholders are reflected through environmental control.
- Accounting system: Accounting system means some procedures and recordings with which identification of business transactions, classification, summarization, statement preparation and analysis for timely presentation of correct information are performed.
- Control procedure: The additional policies and procedures adopted by the business authority for ensuring the achievement of the specific goal of a business organization are the controlling procedures.
These control procedures are:
- Proper delegation of power,
- Segregation of responsibility,
- Preparation and use of documents,
- Adoption of adequate security measures to protect the properties, and
- Independent control over the execution of activities.
Our internal control system development is, not only designed to prevent fraud & forgery but also fulfills other objects:
- The business organization implements its policies complying with the prevailing laws of the country.
- Employees and officers discharge their assigned responsibilities to increase efficiency in the execution of work.
- Financial statements provide correct and reliable information maintaining proper accounts.
Engagements with External Auditors
External Auditors inspect clients’ accounting records and express an opinion as to whether financial statements are presented fairly in accordance with the applicable accounting standards of the entity, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
Expected deliverables for External audit are
- Audit Report
External Auditors issue an independent auditor’s report for the Institution’s financial statements for the financial year which shall capture the audit opinion as to whether there is fair presentation of the financial statements in all material aspects.
- Management letter
The management letter indicating observations made from the audit engagement and recommendations as a result of the observations. VillageHut Accounting assists companies prepare for External Audits, engages with External audits in the external audit process ensuring that the documentation of Audits are ready and available for scrutiny.
Internal Compliance Checks
Compliance checking is the process of review and analysis of the implemented controls to check whether the implemented controls, and their output, meet the security requirements documented in the information security plan and risk treatment plan. Compliance checks are sometimes called internal or external audits, technical testing, management reviews, or ongoing checking, and they are used to check the conformance of:
- existing information-processing systems if changes to the implemented controls have been made, to see which adjustments are necessary to maintain the required security level;
- existing information-processing systems if there are influencing changes that may affect the risk profile;
- existing information-processing systems on a regular basis to ensure they are still meeting their documented objectives;
- new information-processing systems as part of their implementation and after they have been implemented as part of their PIR.
VillageHut Accounting conducts internal compliance checks to test business compliance through:
- conducting a planned series of internal audits or reviews
- conducting periodic planned inspections and tests
- conducting periodic planned management reviews
- conducting periodic unplanned inspections and tests;
- conducting spot checks;
- monitoring operational performance against actual incidents occurring;
- reviewing the continuous improvement process
- technical testing on an ongoing basis
Our Compliance checking is based on the agreed controls from the risk analysis results for the scope or context as well as security-operating procedures which the Top Management has approved. The objectives are to ascertain whether controls are implemented and used correctly and are fit for purpose.