Regardless of size, an internal audit is beneficial to any business. Unfortunately, excuses are rampant as to why an internal audit is not a top priority. Internal audits are often viewed as consequences to inferior performance, but the entire industry is shifting to a more positive light. Internal audits are now crucial tools, offering businesses the opportunity to improve performance and identify problem areas before the organization is affected. Consider these four ways that an internal audit benefits your business.
Insight without bias.
This is the most important aspect of an internal audit. Many challenges are invisible to those within an organization, and an auditor is trained to see the overall picture. The observations and suggestions that an internal auditor can provide are indispensable. Furthermore, an internal audit can inspire growth and help develop a positive company culture. Employees will divulge to confidential information to a confidential source that they would never feel comfortable sharing with others, which can then be used to guide the overall direction of the business.
Fraud prevention.
An internal audit can spot red flags that you may have missed, whether those flags suggest gaps in your security network or your financial reports. Reducing fraud also involves monitoring internal controls, by examining your current policies to determine if the existing infrastructure will protect against fraud in the future. Minimizing the possibility of loss is a great strategy that will strengthen your business.
Risk Assessment.
Do not confuse risk assessment with fraud prevention. An internal auditor can help you define the key differences between the two as you develop your business goals. By identifying and prioritizing risks, such as whether to expand a franchise or invest in a start-up, you can better understand where your investments are more likely to see a return. This can also include the selection of wellness initiatives and computer security assessments. These processes require a comprehensive risk assessment by an experienced internal auditor who can pinpoint where you are likely to find the most success.
Improve efficiency.
You may not realize that some of your current processes are consuming more resources than necessary. An internal auditor is trained to identify areas of improvement and then offer suggestions about what can be done differently. Internal auditors can also monitor compliance, recommending changes that help businesses avoid difficulties with external auditors, fines, and regulatory deadlines. This saves time and money, all which are essential to any business.
When it comes to considering whether an internal audit is beneficial to your business, size is irrelevant. Every business can benefit from an internal audit; it is a partnership that will prevent future challenges and encourage exponential growth. An internal audit is no longer designed for corrections, but a crucial determinant of business success.
