Internal audit system
Internal audit system / Internes Kontroll System IKS
The internal audit system is the sum of all policies and procedures arranged by the organs of the company (supervisory board / board of directors / management board) that guarantee an orderly and efficient management, the protection of assets, the prevention or detection of tortious acts and errors, the accuracy and completeness of the records of management accounting and the timely preparation of reliable financial information. Companies are required to operate an internal audit system by numerous legal requirements e.g. KonTraG, Sarbanes-Oxley Act (SOX). We conclude therefore that neither can the internal audit system be part of the controller service, because it has to monitor the service’s compliance with the mentioned principles and procedures, nor may the controller be part of the internal audit, because he practices future-oriented management support.