How internal audit can add value and improve company’s operations

Internal audit helps companies worldwide accomplish their objectives by evaluating and improving the effectiveness of risk management, control, and governance processes. Internal auditing provides insight and recommendations based on analyses and assessments of data and business processes. Internal audit performs a wide spectrum of activities such as: evaluating the accounting and internal control system, examining the routine operational activities, physical verification of inventory at regular intervals, analyzing the financial condition of the company and detection of frauds and errors.

How internal audit can add value and improve the company’s operations?

The internal audit evaluates and examines organizational risks and assesses and verifies data to see if the available data is falling in line with the strategies and guidelines prescribed by the company. The main aim of internal audit services is to enable the company to achieve operational efficiency by weeding out the possibilities of potential fraud and abuse and improve organizational processes and operations. To achieve this objective small or large scale companies in the public and private sector outsources internal audit services to prevent risk from all environments, internal or external.

The internal audit value chain involves a combination of people, processes, and technology to accomplish goals and improve profitability. Internal audit plays a critical role in minimizing the impact of inefficient operations that increase complexity, obscure performance and hinder decision making. To drive results, internal audit services make use of optimal processes and technologies across the functional areas of the organization to achieve and sustain operational efficiencies.

Internal audit services evaluate the effectiveness and efficiency of operations and programs of an organization in an efficient manner

The operational activities that top the list of internal audit priorities are product and service quality and reliability, including quality controls; product and service mix and pricing; responsiveness to customer complaints, product recalls, and service interruptions; protecting customer information and data, and adapting to changing customers’ needs and expectations.

Internal audit services assist in human resource management

Internal audit services help an organization in finding and retaining employees who can add value to the company. It focuses on improving staff efficiency by doing a SWOT analysis and determines if current tasks can be performed better and faster by the employees without compromising quality and regulatory requirements. Internal audit can provide management with recommendations to improve resource strategy by evaluating critical skill requirements of the organization, how to find qualified employees and managers to fill needs, and how to get the highest-quality work by providing the right incentives, work environment, and tools with the goal of meeting the organization’s objectives.

Internal audit services identify and mitigate risks

 Internal audit services help in mitigating core risks that can impact operations like risks to customers, risks to employees and stakeholders and risks to the company’s continuity. Besides identifying and mitigating risks, internal audit provides guidance to the management to implement adequate compliance steps to prevent regulatory violations that could result in fines, enforcement disruptions, reputational damage, and class action lawsuits.

Internal audit services can increase the profitability of a company

Internal audit can help in reshaping the critical business processes of a company to eliminate fraud, waste, and abuse and deliver profitability to shareholders. It focuses on improving inventory management, reducing cycle times, increasing speed and accuracy of transaction processing, and minimizing human intervention by automating operations. Internal audit also includes asset management reviews, information technology assessments, and reviews to reduce product defects and improve quality controls. Such activities have the benefits of reducing customer complaints, improving productivity, reducing cost, and increasing profitability.

Internal audit plays a vital role in helping management address customer needs and expectations, engage employees in a productive manner, manage risks, address shareholder requests, and improve profitability. It can assist management in achieving market dominance through operational efficiencies without compromising its independence.