10 Benefits of Internal Audit as per ISO 9001
1.
Efficiency
Efficiency
Audit may be defined as a systematic
examination of management's efforts to accomplish goals efficiently and
effectively in order to determine adherence to the management
policies and stated requirements.
The
first step to achieving Audit efficiency is to manage and train clients. CPAs
work best when clients provide them with the data they need.
·
Manage and Train the client
·
Retain Client and Staff
·
Plan Properly
· Access Risk.
2.
Security
A security
audit is the high-level
description of the many ways organizations can test and assess their overall
security posture, including cyber security. You might employ more than
one type of security audit to achieve your desired results and meet your business
objectives.
Four types of security audit
your businesses should conduct
·
Risk assessment.
·
Vulnerability assessment.
·
Penetration testing.
·
Compliance audit.
3.
Integrity
Integrity
requires auditors to observe both the form and the spirit of
auditing and ethical standards. Integrity also requires auditors to
observe the principles of independence and objectivity, maintain irreproachable
standards of professional conduct, make decisions with the public interest.
Integrity
will help the internal auditors to earn better trust in their professional
judgments by other departments or stakeholders. ... Internal auditors
should perform their works
honestly to the company. They should respect the company's policy,
decision as well as procedure, and manual.
4.
Reduced risk
Internal
auditors can identify where fraud
risk exists and make recommendations to adequately mitigate such
risks. Senior management often focuses on running the company and may not place
enough emphasis on monitoring key processes or controls. An internal audit can
help monitor and reduce errors and fraud.
5.
Improved compliance
Audit evaluates an organization’s adherence to
established laws, standards, regulations, policies or procedures. … The
objective of a compliance audit is to assure adequate control over an important
internal process.
A
compliance audit checklist is a
compliance tool utilized by external or internal auditors to assess and verify
an organization’s adherence to government regulations, industry standards,
or the company’s own policies
6.
Ongoing Review
Internal
audits evaluate a company's
internal controls, including its corporate governance and accounting processes.
These audits ensure compliance with laws and regulations and help to maintain
accurate and timely financial reporting and data collection.
Internal
audit will perform: Financial Reviews – to evaluate the accounting and reporting of financial transactions,
including commitments, authorizations and receipts and disbursement of funds.
7.
Division of Work
The
Internal Audit Division is an
independent division designed to improve FFA Private Bank’s operations and
help it accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control
and governance processes.
Types
of Internal audits include compliance
audits, operational audits, financial audits, and an information technology audits.
8.
Shortage of Qualified Staff
The work of an audit
requires years of study and experience. An inexperienced auditor can cause more
damage than good. So usually, the company will find it somewhat difficult to
find enough qualified staff members for the process of an internal audit.
9.
Time lag
There will always be a
time lag between accounting and auditing. Internal audit cannot begin till the
accounting is complete. They cannot be done simultaneously. So if the
accounting process is delayed, so is the internal audit.
Management
audit, as its name signifies, attempts
to evaluate the performance of various management processes and functions.
It is an audit to examine, review and appraise the various policies and actions
of the management on the basis of certain objectives standards.
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