Internal Audit

Why Your Business Needs Internal Auditing

Internal Audit is widely recognised throughout different industries as a way of helping companies achieve their goals. It won’t just help minimise risk either – instead it can:
1. Provide you with valuable inputs to improve performance
2. Identify ways to help you develop more efficient ways to run your operation
Forbes conducted a survey in that verified the importance of Internal Audit, with 94% of respondents agreeing that the function contributed positively to the development of their business.

The Benefits of an Internal Audit

The benefits of an Internal Audit trickle down through all aspects of your business operation

  1. It identifies issues with the management. When an internal audit is performed, one aspect they inspect is the way management works with the staff. If there is a problem with management communication the auditor can demonstrate what the possible resolution may be found
  2. The audit enables testing of internal control systems. Internal auditors comb through all the processes in your business and tell you how to improve them.
  3. It helps to identify internal issues and problems. While you may understand that there is a problem, you might not know where the cause of it lies. Internal audits look at the root of the problem and tell you what can be done to remedy the situation.
  4. It establishes the responsibility of risk control and management. The internal auditor establishes who should be held responsible for certain risks, and the management of these risks.
  5. It assists people in the understanding of their responsibilities. Often people are unaware of who is responsible for certain processes. Internal auditors will identify who is responsible, and tell other members of staff.
  6. It improves information flows in the business. Information given to staff may not be of a high enough quality and this can lead to problems. Internal auditors will assess the quality as well as the quantity of the information that makes your business run.

The Value of Internal Audits

Internal auditors look at the aspects of the business which affect its performance and survival. Internal auditors will look past the financial statements and risks to identify the problems in the business as a whole. Some of the aspects that an internal auditor looks at include:

  1. The reputation of the organisation.
  2. The growth of the organisation.
  3. Change in the organisation.
  4. Risks and opportunities.
  5. Legal Compliance.

Internal auditors are used to helping the companies succeed and tackle diverse issues. The auditors will assess the aspects of the organisation, and then tell the managers what the problems are and what they believe the solutions could be. It is sometimes very hard to see the issues within your own organisation; less still find the solutions. Internal auditors come into the organisation with a fresh pair of eyes, and tremendous amount of experience in analysing, understanding and troubleshooting.

What Happens During an Internal Audit?

When an internal auditor comes into a company or organization, they analyze documents regarding the Company’s risk, objectives and performance, as well as observe how particular strategies are being implemented. Experts recommend relying on outsourced auditors as they are better able to view the operations of the company objectively and without the bias typical of actual employees.
During the audit, skilled professionals who know what to look for will observe, take notes, review documents and interview employees. Auditors will often test employees’ knowledge of company objectives, safety standards and compliance rules.
Their work may take up to a few weeks, depending on the scope of the audit and the size of the company, or department, being assessed. Before it is concluded, an audit includes a consultation with the director or board that hired them to discuss how their suggestions for improvement can best be implemented.

Is Your Company Operating at Peak Performance?

If you want to make sure your company or organization is meeting the highest standards in every area, including data compliance & security, trust a third party Internal Auditor like BMS Consultancy. It is an excellent investment in your company’s future.
Regular auditing will ensure your company is always in compliance, operating efficiently and one step ahead of the competition.