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Internal Audits

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INTERNAL AUDITS

Internal audit is a dynamic profession involved in helping organizations achieve their objectives. It is concerned with evaluating and improving the effectiveness of risk management, control and governance processes in an organization.

Globally, organizations are facing increased competition, not only to sell their own products at a reasonable price but also, for example, procurement of raw input materials, employees, capital, etc. Organisations continuously have to redesign themselves to ensure that their core business processes become more effective and efficient, including taking cost reduction opportunities and improving the delivery of quality goods and services.

A strategically orientated and structured internal audit function can play a vital role in assisting the Board of Directors, Audit Committees, and management in achieving these business challenges. Internal audit can add value by
Focusing on risk areas through the participation in corporate governance and risk management processes.

  • Evaluating and recommending process improvement opportunities.

  • Researching best practices and making recommendations for change.

  • Monitoring the implementation of management strategic actions.

Organising itself as a cost-effective business unit. When designing an internal audit function, a strategy must drive tactics, not the reverse.

Too often, the internal audit functions respond to immediate tactical needs. In a rush to implement responses, key strategic issues can be overlooked. The result can be a tactical internal audit function in search of a strategy.

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