The importance of internal audit in retail sector and application of inventories audit

Today, there is a distinctive internal control system in each business, although it is not very detailed or not in written. However, an active internal control and internal audit plays a significant role to fulfil properly the responsibilities of employees and to reach its stated goals of companies. The internal audit is an business function for companies to carry on their activities healthy and effectively, to manage company assets more rationally, to increase competition power, to achieve aims of preventing any action to be occurred in company, such as error, hoax which may damage to company, also, to undertake management consultation role for the company, aiming company value to reach maximum, in other words, adding value to the company.In the study, internal audit function which evaluates financial activities and other activities of the company and its importance as an internal control element for the companies were implied. Also in this study, the importance of inventory audit and internal control of inventories for retailer companies were analysed by examine on a business application. The purpose of study can able to show that the internal audit is an assurance in sustainability of company performance and that it is not a function incurring cost in companies and the contributions of its for companies which it will provide company in long term, briefly, the importance of internal audit is to imply.The study consists of four chapters. In the first chapter, there are audit and general information concerning audit. In the second chapter, internal audit internal control concepts and the basic information concerning these concepts were explained. In the third chapter, the audit of inventories in companies and its importance were implied and explanations concerning internal control of inventories were explained. In the fourth and last chapter, there is a sample application concerning audit of inventories in retail sector.Keywords : Audit, Internal Control, Internal Audit, Audit of Inventories.