Come to think of it. While doing anything wrong, there’s an inner voice, your subconscious mind telling you that you are treading the wrong path. In the same vein, Internal Audit is one of the most important aspects of the way you manage your organization. It has been a norm to deploy internal team members as Auditors to conduct Internal Audit. With passage of time, it has been found that such measures prove to be inefficient, owing to varied reasons, ranging from complacency, biased approach or even corruption.
In such scenario, it becomes imperative to appoint Auditors outside the organization to conduct Internal Audits. Such time-to-time measure creases out the discrepancies within the organization, hence always keeping its team members on its toes. And if such discrepancies are found, they advise the senior management on processes to be implemented for improvement.
As a pre-emptive measure to maintain operational efficiency and financial reliability, Internal Audit safeguards your asset. Furthermore, it offers the assurance of an organizations’ well-being in terms of risk management, governance and smooth operating of internal control processes.
What does the Internal Audit Team do?
Right from analysing documents, outlining your organization’s performance in tandem with its mission and objectives, the Internal Audit team employs varied assessment techniques. They examine the effectiveness of internal control procedures and determine whether the employees comply with them.
Having reviewed the documents such as responsibility flowcharts, control policies and results from previous audits, the Internal Auditors gather information for their final report and observe operations, make notes based on the findings, review official documents and interview the employees.
How does Internal Audit benefit an organization?
- Assures Quality Control and Smoother Operations
- Wins the confidence of stakeholders
- Detects the frauds
- Risk Evaluation
- Risk Management and Elimination
- Good Corporate Governance
- Boosts productivity
While we are at it, one should also ensure that the business reports are factual, objective, clear and concise. It is often found that organizations fill reports with corporate jargon, technical terms and other language that may require an interpreter to comprehend. Using jargons in reports just for the sake of having them does not add any value or merit to your reports. So, keep it short and simple.
Need any help or assistance in conducting Internal Audits?
Our experts at Kreston OPR Advisory Services are there for you.
