Corporate Governance Internal Audit Solutions

Broaden the view. Compliance pros look beyond financial risks to assess the most significant operational and compliance risks facing the organization and develop a multiyear internal audit plan.

What to know about the internal audit function

When it’s fully developed, a company’s internal audit function possesses a tremendous amount of knowledge and expertise that can help guide the business toward making fully informed decisions based on current risks and pursuing opportunities that would not otherwise be apparent.

Benefits: what to expect of your internal audit function

Internal audit experts are able to hone in on some of the most pressing risks facing the company today, some of which may not have been on the company’s radar, along with rising opportunities. These are some of the other benefits a fully developed internal audit function can add to your company:

Actionable insights: As they bring awareness to opportunities, internal audit shines a fresh light on trends and ideas that senior managers may want to incorporate into their overall strategic plan or keep in mind as they work to fend off competition, increase market share and attract new customers.

Once strategic decisions have been made, there’s a tendency to take a narrow view of how the company should move forward. Resources may be limited to take a broader view. By becoming aware of a shifting trend in a customer demographic or a weak link in the business model, management can be shaken out of any tendency toward complacency. Attention will turn to whether it’s time for a product upgrade, investment in innovation, or a strategic pivot.

Organizationwide awareness of key risks: Many companies’ weakest link is the lack of communication between departments or geographic locations. Internal audit can help to fill in some information gaps by asking the right questions about challenges facing the various areas of the company.

For instance, if the recent spate of high-profile cybersecurity attacks have hit your industry in particular, are all your organizations aware and taking extra precautions? For a geographic expansion in the works, do those involved realize the differences in the new country’s way of conducting business? Internal audit brings such issues to the surface, so that they become part of the discussions involved in planning and strategizing the company’s next moves.

Types of internal audits commonly conducted

From reviewing a company’s corporate governance and accounting systems and processes, its internal controls, its compliance efforts and more, the traditional internal audit function can bring many pressing issues to the forefront that need addressing. Such reviews incorporate the latest trends and priorities among regulators, external auditors and the board of directors.

How internal auditing can help the business

If you are wondering whether your company needs an internal audit strategic plan, consider this: Is your company operating with blinders on? Has complacency stifled growth? Day-to-day priorities can lead to a view that becomes narrower and narrower the more time passes. Internal audit experts ask the questions you don’t know to ask. They bring an independent mindset and an objective view to their inquiries, along with their steep industry knowledge and their understanding of your business, to uncover the risks and opportunities you need to be aware of and consider now.

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