Role Of Management Accountant in Internal Audit.

Internal Audit is basically Scrutiny and review of Functions and Controls of the organisation by Studying and checking the System and process flow through procedures established and reassuring the management and stakeholders that there is adequate Internal controls by way of checks and balances and the process flow is sufficient to deliver optimum value to the Investments.
Enterprise risks are related to the decisions of the management to earn value.
Enterprise risks control is achieved by well established CFT(cross functional team)who constantly identify ,review and monitor Potential threats in process and policies.A management Accountant is vital individual and possess the necessary skill to lead an Internal Audit team and certify the management report on Internal audit.
As against a general financial accountant whose skill is preoccupied in booking revenue and expenditure and preparation of financial statements a qualified Management Accoutant is ideal in assessing the Document flow/Process or service flow/Synergise with reengineering of these flows with technical team and generate a periodical report for the management on the internal controls .
Internal Audit by a management accountant should begin with :
1.Identification of activity centres.
2.Identification of Flow/Path that generate intermediate value to final value for stake holders.
3.Identifying the network and critical path in the flow.
4.Segregating Process/service flow from documents flow.
5.Matching of documents and process/service.
6.Identifying Human interference and system energised activities.
7.Identifying Potential risks and costs involved.
8.Identifying and establishing Controls through checks and balances.
9.Periodical assessment and suggestion for re-engineering of process/service or documents strengtheningor systems or human vigilance.
10.Internal audit also extends to the area of system development cycle and system audit is a subset of internal audit.
11.Internal audit also attacks efficiency area where a management accountant already is dosed in the Cost accountant and efficiency auditor.As an internal auditor he will play a complimentary role for Value addition to stake holders.
Ideally Organisation should be confident in appointing a Qualified Management Accountant for Internal Audit as he possess necessary skills in the area.