Internal Audit

What is Internal Audit?

An internal audit is a process conducted by an organization’s internal audit function or department to evaluate and improve the effectiveness of risk management, control, and governance processes. The primary purpose of internal auditing is to provide independent assurance that an organization’s risk management, internal control, and governance processes are operating effectively.

Objectives of Internal Audit

Internal Audit aid’s the company’s management with the following:

1. Internal Risk Management
2. Evaluation of internal control’s effectiveness
3. Process Improvement by strengthening internal controls to accomplish organization objectives
4. Compliance Assurance to make sure company is in compliant with relevant laws and regulations
5. Financial Integrity to make sure financial information is accurate and reliable
6. Strategic Decision-Making to get proper recommendation and suggest for improvement.
7. Fraud Prevention and mitigation of risk

Internal audits play a crucial role in helping organizations achieve their objectives by providing insights into areas that may need improvement or adjustment. They are typically conducted by internal auditors who are independent and objective within the organization, reporting their findings and recommendations to management and, if applicable, to the board of directors.