People often ask what internal auditing is, and whether it is necessary for a company. Should a small organization spend resources on an internal audit program? For a larger company, with many employees, is it important to secure another opinion? If you need to provide efficient, compliant, and secure services, then the answer is “yes”.
The internal audit has become an important element in the assurance environment of many organizations, and a valuable tool and for managing risk more effectively. This applies to both the corporate sector and the public sector. It is an important function of any information security and compliance program, and is a valuable instrument for managing risk effectively and appropriately.
The role of the internal audit is to provide independent assurance that an organization’s risk management, governance, and internal control processes are operating effectively. Internal auditors, along with executive management, non-executive management and the external auditors, are a critical part of the top-level governance of any organization. Internal auditing provides insight into an organization’s culture, policies, procedures, and it assists board and management oversight by verifying internal controls such as operating efficiency, risk mitigation controls, and compliance with any relevant laws or regulations.
Many companies have already discovered the potential that internal auditing can unlock in their business improvements, and have included internal auditing roles and functions in their businesses. Although this process may seem like a luxury to many small to medium-sized businesses, the truth is that they can't afford not to implement internal auditing in their businesses.
Internal audit programs are critical for monitoring all your business assets and ensuring that they have been properly secured and safeguarded from threats. It is also important because it helps you to verify that your business processes reflect your documented policies and procedures. An internal audit helps you locate areas where your business can save time and money by examining the day-to-day tasks of workers, and pointing out areas where improvement is possible. Audits also identify areas of waste in a business, as well as fraudulent spending or improper transactions by employees.
An internal audit is essential for any organization that wants to utilize its resources properly.