An internal audit is an independent evaluation of how an organisation operates. Internal auditors examine financial reporting, accounting, operations, risk management, internal controls and every other area that affects whether the business meets its objectives.
Unlike the statutory audit, which happens once a year after the books are closed, internal audit is recurring. Depending on the size and sector of the organisation, reviews may run monthly, quarterly, half-yearly or annually. It is a continuous process, because improvement is continuous for any business that wants to sustain and grow.
The advantages of internal audit
For management engaging an internal audit consultant for the first time, these are the main advantages:
- More effective management. The internal auditor identifies weaknesses in operations and internal controls, so management can act on them and improve the chances of meeting its goals.
- Review during the year, not after it. Management does not have to wait for year-end to see how the business is performing. If something is off course, it can be corrected immediately.
- Better staff performance. Teams stay alert when they know processes are reviewed regularly. Errors fall, the risk of fraud reduces, and honest employees see their work recognised.
- Optimum use of resources. Internal audit highlights where resources are underused or wasted, helping control costs and expenses.
- Segregation of duties. Internal audit promotes maker-checker controls, so no single person can initiate, approve and record the same transaction.
To discuss an internal audit programme for your organisation, contact Coreinfo Consultancy on +974 5538 0276 or info@coreinfo.com.qa.
