Common Benefits of Internal Audit

Internal audit can be defined as an independent practice by an organization designed to provide assurance about operating effectiveness of an internal controls through systematic and disciplined procedures by examining risk management, controls and governance processes. Internal audit activities within an organization intent to objective assurance about the operating effectiveness of internal controls, improve efficiency of these organizations’ operations, evaluate risks exposed by an entity, and ensure compliance with law and regulations.

HERE ARE SOME COMMEN BENEFITS OF INTERNAL AUDIT:

• Strengthen Internal Controls:

The main purpose of the internal audit activities is to identifying weaknesses of internal controls issues of existing internal controls within an organization, highlighting internal controls gaps and areas need improvement and enhance the organizational overall control environment.

• Mitigate Organizational Risk

Better management of organizational risk assessment can help the organizations to mitigate the risk exposed and therefore enhance efficiency.

• Ensure Accuracy of Organization Financial and Non-financial Data

Organizations might use various financial and non-financial data to assess its performance and determine achievement of its objectives. Accuracy and completeness of data is key to determine KPIs have been achieved. Since management in some cases tends to manipulate some data to show better results of the organization, internal audit works as deterrent preventing such activity.

Compliance with laws and regulations

For an it to be effective, internal auditor must be up to date regarding all significant laws and regulations an organization are subject to, and ensure proper controls are in place to reduce the risk of non-compliance in order to avoid any potential reputational damage and/or financial losses.

why choose HAMG?

We at HAMG Consultancy Group have team of expert professionals who are capable to assist the client to carry out their internal audit activities and give proper advises to improve internal feel free to contact us.