Advantages And Disadvantages Of Internal Auditing

The second issue is auditing. From my auditing classes back in China, I learned that auditors are paid to find problems in a system, and from the latest audit report from the Office of Inspector General, they audit to see if the funds are used in the right place, and they accomplish that by comparing the financial report and the real accounting record. However, auditing covers more than how the money is spent, which is called “external audit”, there is another type called “internal audit”, auditors examine the accuracy and efficiency of the whole firm and every internal system within. From their name and how they function, we can see that external audit is important for the external viewers, the outsiders, and it is used to see if the financial

Some may explain that internal audit report contain the organization’s detail, and maybe some detail should be protected from disclosure, but other government branches actually release their internal audit report to the public online, like the Texas Department of Banking. The problem is, if we wish to make an internal audit report for the social services sector, we must find a way to quantify its work, otherwise there will be nothing to be compared to, and we have no way to quantify the benefit of certain social welfare

Usually, we quantify the benefit by first look at the scope of influence, what has changed since the program is here, then we found a way to quantify those influences, the benefits of a program usually save the participants’ money by cutting back searching time and overall cost, we can also calculate the number by comparing the cost of some organizations that are responsible for managing the social group that has changed after the program take effects, if the cost decline after the program, then the program’s benefit is, at least, that amount, and if the cost rises, then the program has no benefits. As to the topic of social welfare program, the approach should be pretty similar, for example, the affordable care act, or the ObamaCare act, influence those people without a commercial medical insurance, it can save time for people because they can do other things instead of searching for a good medical insurance. In economics there is a term called “opportunity cost”, it equals to the earning or spending of certain occupied time, if people have more time, they will spend it on something, either work more and enjoy their life, which is basically more consumption, so we can calculate the earning part by comparing the average income of household to old times, data can be from government or household survey, and we can calculate the consumption part by comparing them