When Should You Conduct An Internal Financial Audit

When Should You Conduct An Internal Financial Audit

Financial Audit
Mistakes To Avoid For A Smooth Financial Audit
December 28, 2017
Edmonton accountants
Excellent Bookkeeping Tips For Your Business
January 25, 2018
Show all

When Should You Conduct An Internal Financial Audit

Financial Audit

The word “audit” puts many people under serious nervousness. The only thing many individuals assume about audits is a team of professionally dressed people breaking-in into the office and forcefully checking every account file. This isn’t true. Audits are any physical inspection done by an external or internal person or a team of people. Internal audits reduce the chances of mistakes and frauds. Internal financial audit helps businesses understand their financial position and improve if necessary. So, how often should you conduct an internal financial audit? Here is the list of times when you must conduct a thorough internal audit of your organization.

Mistakes in Books of Account

If you check your books of account on a regular basis, there may be instances when you find mistakes in the numbers. Also, at the end of every month, it’s common that an account has little more or less money. This is the time when you must conduct an internal financial audit and go back to all the statements and invoices to find out what went wrong. During this audit, you may also identify that the process of bookkeeping or maintaining books of account isn’t very active and is causing your employees to make mistakes.

Profits Downfall

A dip in your organization’s profits cannot always be due to market conditions. It can happen due to several reasons such as internal inconsistencies. If your organization isn’t paying much attention to the accounts receivables and timely invoicing, it will affect your profits and even result in a downfall. When you notice a gradual decline in your profits, you must conduct an internal audit to find out what isn’t working right. Whether it is due to external factors such as market conditions and change of prices of goods or internal reasons such as poor compliance. You will be able to take right steps accordingly to elevate your profits once the audit is done.

Before Any Investment

When you ask someone to invest in your business, there are high chances that investors might do a full review of your financial statements. You must make sure that your books of account and statements are updated accurately. Any mistakes in the statements or incomplete books can lead to a bad impression of your business. Therefore, conduct an internal financial audit before talking to investors to make sure all the entries are updated regularly and correctly. And before presenting the statements for investments, check and recheck them to ensure that they are prepared.

You can also conduct financial audits on a regular basis, say weekly or monthly to make sure there aren’t any confusions at the end of every month. Regular audits also help you to run your business in a better way as you can identify the pain points of your organization. If you find any difficulty in conducting your internal financial audit smoothly, you can seek help from professional financial auditors in Edmonton.


  1. Like!! I blog frequently and I really thank you for your content. The article has truly peaked my interest.

  2. Good one! Interesting article over here. It’s pretty worth enough for me.

  3. SMS says:

    I used to be able to find good info from your blog posts.

  4. I’ve been browsing on-line over 3 hours nowadays, but
    I never discovered any fascinating article like yours.
    It can be pretty value enough to me. For me, if all webmasters
    and bloggers made just right content as it is
    likely you did, the internet might be much more helpful than ever before.

    My page – Convection Oven Drop In

  5. It’s an remarkable article in favour of each of
    the internet viewers; they will likely take benefit from
    it I am sure.

    My page :: Red Copper Cookware Set

  6. AvaOTietjens says:

    Magnificent beat ! I would like to apprentice whilst you
    amend your website, how can i subscribe to get a weblog website?
    The account helped us a acceptable deal. I were a little bit bit acquainted of this your broadcast provided shiny transparent concept

    Also visit my page; AvaOTietjens

  7. JerrySek says:

    Знаете ли вы?
    17 бойцов остановили под Старым Осколом более 500 оккупантов.
    Герои украинского сериала о школьниках с трудом изъясняются по-украински.
    Жизненный путь абсолютного большинства звёзд известен заранее.
    Картина парада Победы, где руководство страны смещено на задний план, получила Сталинскую премию.
    Фиктивно отменить рабство в Камбодже её короля заставили французские колонизаторы.


  8. I just want to tell you that I am very new to weblog and seriously liked you’re website. Almost certainly I’m going to bookmark your blog post . You definitely have exceptional writings. Bless you for sharing your webpage.

  9. Hugh Dupre says:

    I just want to tell you that I am new to blogs and honestly liked this web-site. Most likely I’m going to bookmark your website . You really have fabulous stories. Bless you for revealing your web-site.

  10. ReitaGAlamin says:

    Hey could you mind letting me know which webhost you’re working
    with? I’ve loaded your website in 3 different browsers and
    I have to admit this website loads a great deal quicker then most.
    Are you able to suggest a great website hosting provider at
    the honest price? Thanks, I appreciate it!

    Feel free to surf to my site :: ReitaGAlamin

  11. CBD Oil says:

    Some times its a pain in the ass to read what people wrote but this web site is very user friendly ! .

  12. There are some fascinating points in this short article but I don?t know if I see all of them facility to heart. There is some credibility but I will certainly take hold point of view up until I explore it additionally. Excellent short article, many thanks and we desire more! Included in FeedBurner also

  13. Area on with this write-up, I really think this web site needs much more consideration. I?ll possibly be again to check out a lot more, many thanks for that details.

  14. I noticed that you’re putting a great deal of time as well as into your blog and detailed articles! I will be excited about every single little bit of information you post here

  15. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why throw away your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?

Leave a Reply

Your email address will not be published.