Advantages of internal audit to a wholesale business

Internal auditing is an independent consulting activity basically aimed at improving and adding value to a company’s operations. It can be of great assistance for wholesalers as it helps them better assess their businesses. There are simply innumerable benefits and advantages of internal auditing for wholesale business as it works as catalyst for improving the effectiveness of business. With the help of internal auditing, the wholesalers can achieve their ultimate objectives by bringing a disciplined and systematic approach to improve and evaluate the effectiveness of risk management, governance processes and other controls. Generally, many Wholesale companies have no proper accounting system and they rely on their old clerks and so-called accountants. However, as their business grows, the accounts and other management get weaker and this is mostly because of the unqualified employees. In these circumstances the wholesale suppliers should definitely get the services of internal auditing officer who is a professionally qualified Chartered Accountant. The internal auditing officer introduces the proper accounting system in the company and keeps financial record of each and every transaction. The auditor, after proper workout, can point out weak areas of management and thus suggests other options which can yield better results. One of the biggest benefits of internal auditing is that it eliminates the chances of frauds in wholesale business. Without internal auditing, the chances of frauds by clerks or accountants is dramatically increased as they have complete knowledge of whole business and know its weak points from where they can cut their share. The wholesaler himself cannot track the profit drains and frauds, as he has to do many other things other than accounting. With internal auditing officer, the wholesaler will be updated with the true and clear picture of his business with all frauds and profit drains clearly visible. The duty of internal officer is to check all accounts including amounts receivable and payable with all overhead expenditures. The other advantage of internal auditing officer is that it saves huge amount of money served on external auditor. Generally, many companies are in the business of offering professional expertise of external auditing officers, which are very expensive to hire. So having an internal auditing officer is the best option to save extra money served on external auditing. Without an auditor, it is very difficult to compare the current performance of company with its previous year’s performance. It is only possible if an internal auditing officer keeps proper record of wholesale company’s operations. Many companies adopt different tax evasion techniques by falsifying the profits and other income stats. With unqualified employees, they are caught by government tax collecting organizations and ultimately have to pay heavy fines. On other hand if at all they succeed to get away without paying taxes but they themselves loose the actual figures of their companies’ profits. With internal auditing officer, they can easily adopt tax evasion techniques while also keeping track of their actual records. Nowadays internal auditing has become the most demanded and highly paid job as UK Wholesale Distributors know that the success of their wholesale business purely relies on internal auditor.