Auditing is the art of evaluating the effectiveness of an organization’s internal controls. Maintaining an effective system of internal controls is vital for achieving an organization’s business objectives, obtaining reliable financial reporting on its operations, preventing fraud and misappropriation of its assets, and minimizing its cost of capital.
It is of interest to any school or college administration and stakeholders to see to it that their institution progresses well and above all become sustainable aside from meeting its objectives. Such can only be achieved under proper internal controls which guarantee prudent and effective utilization of resources.
Having an effective audit system is important for a school because it enables it to pursue and attain its various administrative objectives. A learning institution’s processes need various forms of internal control to facilitate supervision and monitoring, prevent and detect irregular transactions, measure ongoing performance, maintain adequate transaction records and to promote operational productivity.
With a good school administration software like Bunifu ERP for schools, self audit or internal auditing review can really improve the internal controls in the accounts, procurement, student management, accommodation, transport and examination departments.
Such fool proof and secure software eliminate human errors, ensure speedy delivery of services, effective communication and reduction of paperwork and the risk of losing information as most of them provide back up of the digitized information resulting from automation of processes.
Recently the Kenya’s Education Cabinet Secretary Dr. Fred Matiang’i termed the public schools auditing system a great let-down as audit reports did not reflect the actual situation in every public learning institution where funds may have been misappropriated.
Self and internal audit facilitated by automation of processes serves an important role for institutions in fraud prevention. Recurring analysis of a school’s operations and maintaining rigorous systems of internal controls can prevent and detect various forms of fraud and other accounting irregularities.
For excellent internal controls, always go for Bunifu ERP for Schools, an admin systems with seamless audit trails developed in line with the ministry of education standards.