The internal audit according to the institute of internal auditors “IIA” is an independent and objective activity that aims to provide assurance on the degree of control over an organization’s operations, to offer advice for their improvement and to contribute to value creation.
Internal audit is a key pillar of business management, through the identification of risks and improvement of processes. So companies that take internal audit seriously can not only avoid costly pitfalls, but also strengthen their overall performance.
Table of Contents:
What are the objectives of internal audit?
What is his role?
How do you do an internal audit?
What are the objectives of internal audit ?
Internal audit ensures :
Identify and improve risk management.
Identify areas for improvement and make recommendations.
Implement good practices to motivate teams.
Ensure that the company complies with laws, regulations, internal and external standards, as well as contractual requirements.
The ability of the company to achieve its strategic objectives.
Contribute to strengthening governance mechanisms and aligning corporate objectives with stakeholder expectations.
What is the internal audit role ?
The primary role of an internal auditor is to analyze and advise the organization on the effectiveness of its internal processes. By identifying possible risks, whether operational, financial or compliance.
Also, internal controls and improvement proposals are very important in internal audits to optimize risk management and cost reduction.
Finally, follow-up and corrective actions to ensure continuous improvement.
How do you do an internal audit ?
Conducting an internal audit requires a methodical approach that is based on the following steps:
Audit planning
Before launching an audit, you must first define what you want to check and in which area. Then, a clear plan with well-defined milestones and appropriate resources must be developed to complete this assessment.
The preparation
It consists of collecting relevant documents, such as procedures, reports or flow charts, which will serve as the basis for the audit. It is also important to inform relevant stakeholders and prepare the necessary tools, such as checklists or questionnaires, to facilitate evaluation.
Audit execution
The auditor collects information through interviews, observations and examination of available documents. These data are then analysed to identify the gaps between current practices and defined benchmarks. Special attention is paid to the evaluation of internal controls, in order to test their effectiveness and detect possible weaknesses.
Follow-up of corrective actions
Ensuring that recommendations are implemented effectively is critical. This step involves checking the progress of corrective actions and assessing their impact on process improvement or reduction of identified risks.
sourceLogique offers customized internal audit services to help companies improve their performance.
Contact us: info@sourcelogique.com