PBN: Why might companies question the necessity of internal audits and internal controls?
LOW: Companies might question the necessity of internal audits and internal controls for several reasons, including cost concerns, perceived lack of immediate benefit, lack of understanding risks, overconfidence in existing processes, resistance to oversight, cultural attitudes, and the complexity of developing a system of internal controls.
Conducting internal audits and maintaining internal controls can be costly. Smaller companies may be particularly concerned about investing the resources required for supporting an audit function and the implementation of controls, which include hiring internal auditors or external consultants, investing in internal control systems and dedicating staff to these processes.
PBN: How do internal…
