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.

  10.  Importance of Management

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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