WHY INTERNAL AUDITS ARE IMPORTANT

HERE ARE SOME IMPORTANT REASONS INTERNAL AUDITS ARE IMPORTANT

Provides objective insight

• By providing an independent and unbiased view, the internal audit function adds value to your organization

Improves efficiency of operations

• By objectively reviewing your organization’s policies and procedures, you can receive assurance that you are doing what your policies and procedures say you are doing, and that these processes are adequate in mitigating your unique risks.

• By continuously monitoring and reviewing your processes, you can identify control recommendations to improve the efficiency and effectiveness of these processes. In turn, allowing your organization to be dependent on processes, rather than people.

Evaluates risks and protects assets

• An internal audit program assists management by identifying and prioritizing risks through a systematic risk assessment. A risk assessment can help to identify any gaps in the environment and allow for a remediation plan to take place.

• Your internal audit program will help you to track and document any changes that have been made to your environment and ensure the mitigation of any found risks.

Assesses organizational controls

• Internal auditing is beneficial because it improves the control environment of the organization by assessing efficiency and operating effectiveness.

Ensures legal compliance

• By regularly performing an internal audit, you can ensure compliance with any and all relevant laws and regulations. It can also help provide you with peace of mind that you are prepared for you next external audit. Gaining client trust and avoiding costly fines associated with non-compliance makes internal auditing an important and worthwhile activity for your organization.