There is no denying that an Internal audit is of great value in enhancing a company’s overall performance. Internal auditors help businesses discover important risk issues and deal with them before they pose serious problems. This enables the business to recognise present shortcomings and anticipate potential future issues. Also, it gives a business a chance to pinpoint processes and procedures that are ineffective and improve them. In other words, the primary purpose behind internal audits is to ensure that a company’s risk management, governance, and internal control procedures are working properly. Let’s find out how internal auditing is done and how it benefits your company.
What is the process of an internal audit?
An internal audit is conducted by designated professionals who take notes and observe objectively. They take their time to interview the employees to learn what they do in the company and how well they do it. The primary role of an internal auditor is to review and evaluate the paperwork and documents related to the objectives, risks, and performance of the company.
Furthermore, internal auditors try to find out if specific strategies have been implemented in the right manner and are contributing to company goals. After learning about the employees and assessing the internal processes, the auditor delivers a detailed report to the director of the company and provides suggestions for improvements. Depending on the scope of the audit and the size of the company, the process might take a few weeks or months.
What are the benefits of internal audits?
To put it in a nutshell, internal audits help companies find opportunities to improve and grow. But this happens in different ways and at different levels. Here are some of the main benefits of internal audit to a company’s performance which you must know about:
One aspect of internal audit is seeking ways to do things in a better way. There are usually certain redundant practices in almost every company that goes unnoticed. Eliminating such practices has a great impact on the company’s improved efficiency. After getting a clear picture of the company’s status, internal auditors can easily identify such practices and provide suggestions for eliminating or improving them.
As a business owner, you would prefer your business to face no threats. More often than not, there are certain gaps that must be filled before such threats show their ugly head and put an end to your dreams. As we discussed above, internal auditors identify minor/major risks that your company is exposed to and provide solutions regarding how these risks can be tackled.
Another benefit of running an internal audit is that you can spot red flags that have gone unnoticed. These red flags might be related to your security network or the financial reports. By examining your current policies, internal auditors can determine whether or not the existing infrastructure will protect your company against any non-conformances in the future. This entails minimising the possibility of any loss and, consequently, strengthening your business.
Improving the performance
Doing the same thing over and over will often make the job somewhat ordinary, if not boring. As a result, the employees might put less effort into their tasks and not focus as much as they should. As we mentioned above, internal auditors interview the employees to learn about their responsibilities and the quality with which they perform their duties. Knowing that they will be asked about their duties, the employees learn to carry out their tasks on time, and for that matter, with great quality.
Where to begin?
Regardless of how detailed your initial plan for the company was and how punctual and precise your employees are, you always need to seek improvement. One way to improve your company’s performance is to run annual internal audits. To make sure that everything will work to its best potential, you should contact the right internal auditors. Here at IntegPro, we have a team of ISO lead auditors who can conduct the best internal audit in your company and provide you with insightful ideas regarding opportunities for improvement. All you need to do is contact us and tell us more about yourself. We are more than willing to learn about you and help you take your business to the next level.