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 its elp, 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. 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.
Another advantage is that it saves huge amount of money served on external auditor. 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.
Nowadays internal auditing has become the most demanded and highly paid job as wholesale distributors know that the success purely relies on this.