According to the institute of internal auditors, the role that the internal auditors play is that of providing assurance that the organization’s departments, such as risk management, governance, and internal control processes are all working accurately. Internal audit is extremely important when it comes to trying to manage risks. It allows the companies to understand whether they are ensuring what they are doing and are fulfilling the promises that they did make. They will also be able to locate any gaps within the policies and the procedures and figure the areas where they can improve more. In order to help a business figure all that out, it has to conduct the internal audit objectively and design it to improve and mature the business practices of the organization.
Through an internal audit, you can peak into the kind of policies, procedures, the culture that the organization entails, and also how its aids in pointing out the oversight committed by board and management through verification of internal controls like operating effectiveness, risk mitigation, and compliance with relevant laws and regulations. It is also for these reasons why companies like Parker Russell International is always so in demand.
The international organization holds a global network of tax, audit, and advisory firms. Founded in 2003 by Jason Parker, the company is headquartered in London. They have committed themselves on a mission to provide quality services to members and clients and also enhance their professional relationships for the benefit of worldwide membership. They replaced Deloitte Malaysia as an external auditor for 1Malaysia Development Bhd in 2009. Their worldwide associations with quality local and regional accounting firms are what has enabled them to strengthen and broaden the scope of service to its members and clients.
Provides objective insight
A company cannot audit their own work without having an evident conflict of interest. Their internal auditor or audit team cannot have any sort of operational responsibility to achieve this objective insight. In situations where smaller-scale companies do not have any extra resources that they can devote to this, it is acceptable that they cross-train their employees from different departments so that they can audit another department. The internal audit function will add value to your organization.
Improve the efficiency of operations
When you objectively have your organization reviewed concerning its policies and procedures, you are receiving and assurance that you are doing what your policies dictate. These policies are useful in mitigating the unique risks that you would be taking in the future. Through continuous monitoring of your processes, you will be able to identify the control recommendations that will help in improving the efficiency and effectiveness of the processes.