An internal auditor is a person who gives independent verification of a business’s financial records. They are also commonly used by central government agencies when conducting financial research. Internal auditors should be registered members of an accounting firm and hold a professional certificate issued by an accounting governing body.
Main Roles for Internal Auditors
There are two main roles for internal auditors in risk management. Firstly, they may identify and investigate accounting errors and suggest measures to reduce risk. Secondly, they perform preventive management audits to identify risks before they become significant enough to affect the performance of a business.
Two Main Roles for an Accountant
In the United Kingdom, there are two main roles for an accountant or an external auditor. The first role is that of an internal auditor. Internal auditors do not provide financial reporting or advice to the public. Their job is to ensure that the companies’ financial records are correct and up to date. They are allowed to make recommendations for improving the quality of financial documentation and for improving the timeliness of financial reports. They are not allowed to give legal advice.
Accountants in the UK have Two Main Functions
The first is to perform the main activity of accounting, which is the preparation of financial accounts. They must verify the accuracy and completeness of these accounts. Second, they are responsible for providing management advice. Advice to management includes making suggestions for improving the management practices and also for reducing risk. Most accountants in the UK also carry out independent audits of accounting firms.
Certified Fraud Examiner
The second role of an internal auditor in the UK is that of a certified fraud examiner. A certified fraud examiner (CFE) is a member of the Institute of Chartered Accountants of India and is specifically trained in the field of financial affairs and accounting fraud. Members of the ICAI undergo rigorous training in order to become CFEs. Members of the ICAI can also obtain further training through additional accreditation at a nationwide or regional accrediting agency.
Conclusion
Most public sector organizations in the UK have hired internal auditors in order to detect and reduce fraudulent activities and ensure compliance with statutory obligations. In the United Kingdom, the Association of Certified Fraud Examiners (ACFE) is the sole governing body to regulate internal auditors. Additionally, in the United Kingdom, a number of bodies, including the Financial Services Authority, Banking Code, Financial Services Executive, the Prudential Regulation Authorities, the Financial Service Authority, the Office of Fair Trading, and the London FSA, are responsible for ensuring that the activities of internal auditors are ethical. In addition, the United Kingdom auditor general has specific duties to ensure that public sector organizations meet their legal obligations and can only engage in those activities which are in line with the UK laws and regulations.
