Why is internal audit important?
The internal audit function comprises a department, division, team of consultants, or other practitioners who provide independent services and, assurance and consultation objectives, designed to add value and improve an organization’s operations. The internal audit activity helps an organization achieve its objectives by providing a systematic and disciplined approach to assessing and improving the effectiveness of risk management, control and governance processes.
In this sense, the internal audit function represents in an organization the main support to the audit committee, the board of directors, shareholders or those who direct the business, for an adequate administration and continuous monitoring of the risks that may prevent the fulfillment of Business objectives, through the execution of an internal audit plan which includes the review of critical business areas and processes. The internal audit function monitors compliance with internal controls designed by management and adds value to the organization by providing recommendations for correcting internal control weaknesses and improving process efficiency.
The scope of the work of the internal audit is determined by its mission to ensure, mainly, that:
- Risks are identified and managed properly.
- Significant financial, administrative and operational information is accurate, reliable and timely.
- Employees act in accordance with policies, procedures and regulations.
- The resources acquired are used and protected efficiently.
- Programs, plans and objectives are achieved.
- Quality and continuous improvement are an integral part of the controls.
- Significant legal or regulatory issues that impact the organization are recognized and properly addressed.
How can we help?
We can support you in the different steps involved in creating the internal audit function, such as:
- Advice and talks to senior management on the need and understanding of an internal audit function.
- Preparation of the internal audit statute.