The internal audit function has long supported its mission for public companies, but most organizations can benefit from having an independent function to hold companies accountable to their business objectives and underlying processes, roles, and responsibilities. The internal audit department provides independent assurance that an organization’s risk, governance, and internal control processes are operating effectively. Internal audit departments vary in size, and many organizations outsource or co-source the internal audit function to a third party to maximize budget, efficiency and expertise.
Most organizations would benefit have an internal audit function to accomplish any of the following:
- Identify risks to your organization.
- Ensure your organization is meeting its business goals.
- Save your organization time and money.
- Identify fraud risks.
- Ensure compliance with laws and regulations.
Regardless of organization size, the benefits of the internal audit function work to minimize risk and increase efficiency, helping organizations:
- Save time and money. Internal audit identifies redundancies in your business practices, procedures, and processes and comes with recommendations on how to streamline operations to save time and money.
- Optimize cybersecurity. Internal audit reviews your cybersecurity controls to determine whether they are aligned and operating by industry standards and internal policies. They also look for issues in your systems and advises on how to close gaps.
Strengthen internal controls. Evaluating your control environment is your internal auditor’s primary role. Internal audit evaluates your internal controls, which comprise actions, systems, and processes, including monitoring, to ensure that they are designed, implemented and working at top capacity. - Expand fraud prevention and detection. Internal audits can play an important role for companies in reducing the risk of fraud and assisting management with structuring their organization with proper segregation of duties.
- Reduce risk. The internal audit considers all the significant risks to your organization and analyzes whether you are mitigating those risks to an acceptable level, providing recommendations to resolve potential issues.
Assist with compliance. Internal audit assists management with improving compliance by providing recommendations to enhance control performance. - Essentially, an internal audit creates value by providing objective insights into the performance of your organization’s operations and controls, advising how to improve your processes, especially those concerning risk management, governance and internal controls. Internal auditors can also help you improve your operations, avoid financial loss and identify opportunities for growth.
Even if you do not have a formal internal audit department, you can still take advantage of a full organization risk assessment and performing internal audit procedures that work both within your preferred timeframe and budget. Partnering with a professional service provider for internal audit projects or as an outsourced team allows you to evaluate your current internal audit function or internal controls environment and development strategies to strengthen your organization. The right professional can help you reduce risks of fraud or material error, maximize operational effectiveness and identify opportunities to maximize profits by reducing costly inefficiencies.
Windham Brannon helps organizations of all sizes and types to navigate the risk management process. Our team combines experience in internal controls, risk management, regulatory compliance, and cybersecurity to provide a full range of internal control and risk advisory services. From performing a specific project to working in a co-sourced arrangement with your internal audit department, we have the skills and abilities to meet your needs.
If you’re ready to know more about how to maximize your internal control and risk management opportunities, contact your Windham Brannon advisor today, or contact Dean Flores.
