The Value of Internal Audits.
This past 2-3 years has brought several global challenges that have really hammered home the importance of strong systems and business risk assessment.
Assurance has rarely been more in demand as organisations are facing the question of whether their risk management systems are strong enough to survive pandemic, the impact of war, and inflation.
The coming few years will provide internal auditors with plenty of opportunities to add value to businesses and remain relevant in an ever-changing landscape.
However, this can only happen with the appropriate buy-in from top management.
What is the role and value of an internal audit?
Successful internal audits give senior management the confidence that their organisation has the processes and controls in place to deliver its objectives and manage key risks.
Whether you choose a trained internal or external role for internal audits, it should provide a risk-based approach to determining vulnerabilities and their associated controls within your organisation, following an effective internal audit schedule that prioritises high risk areas.
With these tools, an effective internal audit will:
Identify widespread or persistent issues.
Highlight high or emerging risk areas to management to help them prioritise.
Provide a safety net against significant risk or breach.
Investigate the true root cause of any issues.
As an external role, an auditor has an impartial and objective view of the organisation, arguably giving them an advantage over internally trained auditors in the value of their approach and results.
If internal auditing is not properly resourced and taken seriously, the consequences can be severe. While an internal auditor does not usually have responsibility for the implementation of controls and processes, they are often the first to spot where something is going wrong, which can be vitally important where the consequences of missing an issue can have legal and/or safety implications.
Both internally an externally, there is of course a cost implication to properly resourced internal auditing, but despite the need for cost cutting in today’s unstable climate, this is an area that should not be overlooked or short changed. For most businesses, it is a mandatory requirement, either for your customers, suppliers and/or standards such as ISO.
Quality Improvements UK Ltd. currently provides trained and experienced internal audit services across a range of sectors that is not only impartial and professional, but also cost effective.
Whether you are looking for help with immediate or long-term internal audit support, contact us at firstname.lastname@example.org and find out how we can help today.
For more advice on all things ISO, keep an eye on our future blogs.