There is a wrong notion that internal audit is exclusive to only big companies. This perception paints a wrong picture of what internal audit entails and the benefits of it to a company. But then, internal audit is a process that allows a company to carry out regular review of its operations. A review critically looks at a company’s internal operations including its accounting processes or systems and corporate governance. A company often defines the scope or purpose of the audit.
Indeed, internal audit usually assesses the financial, operational, compliance, information technology (IT) or for any other specific purpose. Operational audit, for instance, may want to assess procedures in the company and whether resources are being used more efficiently. That said, information technology (IT) audit examines the controls, hardware, software, security, documentation and backup (recovery) of systems. An audit report is primarily used by the internal management to improve a company’s operations. What then are the internal audit processes and the inherent benefits?
The Internal Audit Process
Even though the internal audit process is not cast in stone, it can…
