Understanding Internal Audit
Ensuring the success and efficiency of the internal audit unit within an enterprise is the goal of any management team. Internal auditing is impartial in keeping a company in check continuously and ensuring it keeps in line with the results of an external audit. As such to ensure the efficiency and success of an internal audit, one should follow the following four steps.
Step one: High priority areas
The first phase involves the institution of high priority areas that the internal audit should give consideration. The process of identifying such areas should be integrated into a company’s risk management plan, which helps in the mitigation of threats a company is likely to face. In most companies, the process of internal auditing is integrated in a way that the process is in compliance with other activities is undertaking. As such, one should give priority to areas that require particular attention to reducing the risks wastage of resources within the company.
Ordinarily, when pointing the focus areas, one should’ check the continuous availability of such high-risk areas, break down complex business processes, and evaluate the initial cost and the cost of running the process.
Step two: Consistent monitoring of the internal audit process
Continuous assessment of the level of compliance of the internal audit process is an equally important part of the project since the results of the project help the management when making decision matters affecting the success of the business. For instance, one should monitor the process against the internationally agreed procedures with regard to auditing.
Besides, it is impartial to take into consideration the legal issues, environment upon which the audit is conducted, and the general goals of the process against the organization’s goals.
Step three: Continuously verify the frequency if the process
Although the process is regarded as continuous, it is always to check the cadence of the processes being audited such as the timing of the computer and business procedures. Additionally, one should continuously check on the availability of internal auditors to ensure the success of the process without fail. As such, the cost-benefit ratio of continuously conducting an audit within a given area should be regularly monitored to ensure consistency of the project.
Step four: Communication of the results
One of the fundamental reasons behind the conduction of effective internal audits is to improve the quality of decisions made by a company. Also, enhancing the morale of workers by continuously evaluating their working environment is an objective of the entire internal auditing process. As such communicating, the results of the audit to the relevant quotas ensure the smooth running of the internal audit process. The results should be made available to the auditors and the management to enhance transparency and efficiency of the whole project.