Internal Audit of Finished Products at Industrial Enterprises: The Organizational Aspect

Abstract

A review of approaches to internal audit of the accounting system for fin ish edproducts and sales at industrial enterprises is given. As propositions contained therein arecomprehensive, hut not specified, there is a need for their further methodological elaborationand specification, to create applied solutions fo r selected operation cycles characterized byoccurrence of complicated risks.Typical approaches to internal audit and problems involved in it are highlighted. Inbusiness practice, continuous audit is not always rational. Considering that the audit term is usually limited, most often random audit is used, depending on the extent of the current auditrisk. When the number of operations that are subject to audit is small or all the operationscan be audited without significant labor consumption, continuous audit is performed. In theother cases, a sample audit based on data extractedfrom the previous analytical proceduresand results of previous audits are used. Each functional unit of an enterprise develops its own plan for audit, depending on the audit purposes and the extent of identified risks.The main segments in the accounting system for finished products and sales with higher risk of accounting data distortions are identified. Optimal results can be achieved by focusing internal audit on selected operations. To choose the right segment of operationdata for audit, probable risk occurrences need to be located, and the existing risks need to be identified and assessed.