In simple words, internal audits evaluate how well your company manages risk. To do that, we assess the rules, procedures, and mechanisms set in place to maintain your company’s general financial health, accountability, and integrity. In such audits, your accounting processes, corporate governance policies, and internal controls are evaluated to make sure that they comply with the existing laws and regulations of the country. Such routine checks will help the management to spot issues early on and fix them in time. This will lead to improved efficiency and freedom from legal and financial troubles.
Conducting routine internal audits is a sign that your company takes risk management and law compliance seriously. This improves your company’s credibility in front of financial institutions and clients.
The Challenges for Internal Audit
A strategically orientated and structured internal audit function can play a vital role in assisting the Board of Directors, Audit Committees, and management in achieving these business challenges. Internal audit can add value by;
- We are focusing on risk areas through participation in corporate governance and risk management processes.
- We are evaluating and recommending process improvement opportunities.
- We are researching for best practices and making recommendations for change.
- We are monitoring the implementation of strategic management actions.
- It was organizing itself as a cost-effective business unit. When designing an internal audit function, the strategy must drive tactics, not the reverse.
Too often, the internal audit functions respond to immediate tactical needs. In a rush to implement responses, key strategic issues can be overlooked. The result can be a tactical internal audit function in search of a strategy.