Internal audit in shipping management companies
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Keywords
Shipping management ; Internal auditAbstract
Internal audit is a very important process that helps companies to have better control. All companies works in accordance with this process so that they can protect their property and know that employees are in compliance with the rules and regulations. For a management shipping company compared to other companies, internal audit is more important procedure as ships have crew, which means human lives, fuels that can pollute the environment and of course the cargo they carry, which together with the ship itself is an asset. As in the past there have been many accidents at sea caused by human error, an International Safety Management Code was created by the International Maritime Organization. This code refers to the safety of the crew, the cargo and the pollution prevention, and this code is mandatory to be followed by all management shipping companies operating vessels. A key process that this code requires is Internal Audit both at the Management Shipping Company's (ashore) and on board ships. This assignment will describe the necessity of Internal Audit, the types of the Internal Audit, the requirements which an auditor must have to perform the audit, and the areas which should be audited. In addition to internal audit, this assignment also refers to external audit since it usually the internal audit process performed before external audit. Finally in this assignment the reader can understand how the procedure is performed in real time, since the last chapter will describe the process exactly as it is done in the management shipping company, once the employees are informed that the internal audit of their department is to be carried out and on board the ship as soon as the auditor arrives at the port before even boarding the vessel. Of course, throughout the process the preparation of members (inspector and inspector) will be described.