Continuous improvement is a cornerstone of all businesses that enjoy long-term success. Regardless of industry, businesses that do not explore ways to improve their operations risk facing noncompliance and financial loss, hindering future growth. The core key to continuous improvement involves a willingness to examine policies, practices, and procedures on a regular, real-time basis and to modify those that prevent growth and success.
Internal auditing is one fundamental way to address the issue of continuous improvement.
The Institute of Internal Auditors has defined internal auditing as:
[…] an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
In other words, companies that employ an internal auditor can better monitor their internal control processes for effectiveness, efficiency, regulatory compliance, redundancy, and relevance. Internal auditing does not tell a company exactly how to run each aspect of the business. Instead, an internal auditor analyzes what a company does and tells the company if the goals of management (and the expectations of regulatory agencies) are being met accordingly.
Unbiased Partners are a Resource
Most employees have a vested interest in the policies, practices, and procedures they implement or carry out for their companies. Therefore, it can be difficult for those inside these companies to clearly see weaknesses or areas that could be improved. An internal auditor is an unbiased partner who is only responsible for suggesting where better policies and procedures could be implemented.
Internal auditors are able to dispassionately examine a business and make objective recommendations about what could be improved upon. The recommendations of an internal auditor are only based upon the goal of continuous improvement, and remain objective without punitive measures. A partnership with an internal auditor can identify problems before your business is under the unforgiving microscope of the IRS or an external auditor.
Partnering with an internal auditor is the best action business leaders can take to improve their companies and ensure continued growth and improvement. Without this objective evaluation, the future success of your business is at risk. This analysis also bolsters compliance and ensures maintenance of regulatory practices, reducing the potential of fines and other damages.
If you have not implemented an internal auditing process, take that critical step now.
Regardless of your organizational situation, having an internal auditing process in place should be a core priority. Continuous improvement drives growth and continued relevance, and internal auditing maximizes the level of success your business can achieve.
