Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes
The core principles proposed to characterize an effective internal audit function are as follows:
- Demonstrate uncompromised integrity.
- Display objectivity in mindset and approach. Demonstrate commitment to competence.
- Be appropriately positioned within the organization with sufficient organizational authority.
- Align strategically with the aims and goals of the enterprise.
- Have adequate resources to effectively address significant risks.
- Demonstrate quality and continuous improvement.
- Achieve efficiency and effectiveness in delivery.
- Communicate effectively.
- Provide reliable assurance to those charged with governance.
- Be insightful, proactive, and future-focused.
- Promote positive change.
Internal auditing assists an organization to obtain assurance on the organization’s governance, risk management and control processes to help the organization achieve its strategic, operational, financial, and compliance objectives. Management and governing bodies may rely on an internal audit to evaluate if the organization is operating how management intends and if policies and procedures are being appropriately followed.
An internal audit can
- help an organization to meet its goals and objectives
- educating management and the board regarding critical issues
- monitoring compliance with laws and regulation
- evaluating whether policies and procedures are being followed
- Making recommendations for how the organization can improve operations
- Reduce costs, enhance revenues or improve profits.
As a catalyst for improving your organization’s effectiveness and efficiency, an internal audit can provide insight and recommendations based on analyses and assessments of data and business processes. Many internal audit professionals bring a broad range of backgrounds that can serve in a variety of capacities. Through assurance, insight, and objectivity, internal auditing can assist with all of these things – the combination of which can be invaluable to your organization’s success
If You want to Become a Lead Auditor or Internal Auditor – MacLead will help you to achieve that