Internal Audit Services
Your internal audit program should give leadership a clear view of business risks and the controls in place to address them. LBMC helps organizations develop audit plans, evaluate financial and operational processes, and strengthen governance through outsourced, co-sourced and project-based internal audit support.
If you are building a function, expanding coverage or addressing prior findings, we help you focus audit resources on the areas that matter to your organization.
When Organizations Invest in Internal Audit
Growth, acquisitions and increased oversight can change the risks your organization faces. Internal audit helps leadership evaluate financial and operational controls, identify gaps and prioritize improvements.
Organizations commonly engage internal audit services when they are:
- Building or improving an internal audit function.
- Preparing for increased board, lender, investor or regulatory oversight.
- Strengthening governance, risk management and internal controls.
- Expanding through acquisitions, new locations or rapid growth.
- Preparing for or maintaining Sarbanes-Oxley (SOX) compliance.
- Addressing gaps in audit coverage or following up on prior findings.
- Supplementing internal resources through co-sourced or outsourced internal audit support.
Need to Strengthen Your Internal Audit Function?
Tell us about your audit priorities, current resources and reporting needs. We can help determine where additional capacity or experience would support your team.Internal Audit and Risk Advisory Services
LBMC provides internal audit services that connect business risks, control testing and practical recommendations. We tailor the work to your objectives, operating processes and reporting needs, whether you need a focused review or support for your overall audit program.
Enterprise Risk Assessments and Audit Planning
Identify and prioritize the business risks that should inform your audit plan. LBMC facilitates risk assessment discussions, gathers input from leadership and helps determine where audit resources are needed. We connect proposed coverage to your organization’s objectives, operational changes and existing findings.
Internal Control Assessments and Testing
Understand how controls are designed and whether they operate as intended within the agreed review scope. LBMC evaluates financial and business-process controls, documents processes and tests supporting evidence. We help your team identify gaps and consider improvements that reflect the way your business operates.
Operational Audits and Process Reviews
Examine the processes that support day-to-day operations. LBMC performs operational audits and targeted reviews to identify control weaknesses, inconsistencies and opportunities to improve how work gets done. We document findings and recommend practical actions for management to consider.
Compliance Audits and SOX Support
Evaluate controls and processes against the requirements relevant to your engagement. LBMC provides compliance audit support and coordinates internal audit work with SOX readiness and ongoing compliance needs. We agree on the objectives, testing responsibilities and reporting expectations before the work begins.
Governance Reviews and Fraud Investigations
Evaluate oversight, accountability and the controls supporting business decisions. LBMC provides governance reviews and fraud investigations, with scope based on your organization’s concerns and available information. We help management understand findings and consider where stronger oversight or additional action may be needed.
Internal Audit Function Reviews
Assess how your internal audit function supports the organization’s needs. LBMC reviews the function’s coverage, processes and reporting to identify opportunities for improvement. We can also help organizations establish or strengthen an internal audit program as responsibilities, business risks and resource needs change.
Related Audit and Assurance Services
Your organization may need additional work to address financial reporting or external assurance requirements. Depending on your objectives, related services include:
Internal Audit Delivery Models
Choose support that fits the responsibilities your team wants to retain and the work you need completed.
Fully Outsourced Internal Audit
Engage LBMC to support an agreed internal audit program, including planning, execution and reporting responsibilities defined in the engagement.
Co-Sourced Internal Audit
Retain leadership of your audit function while adding LBMC resources or specialized experience for selected work.
Internal Audit Staff Augmentation
Add resources to work alongside your existing team during increased demand or staffing gaps.
Project-Based Engagements
Address a defined audit, process review or assessment without committing to a broader engagement.
Coordinated IT Audit Support
Technology risks can affect financial reporting, operations and sensitive information across your organization. When your audit plan calls for specialized technical coverage, LBMC’s IT audit services can support the work. Our teams coordinate scope and reporting so technology findings inform your broader internal audit priorities.
Let’s Discuss Your Internal Audit Needs
Let’s discuss your internal audit priorities, current resources and reporting needs. LBMC can help you determine where an outsourced, co-sourced or project-based approach would support your organization.
What to Expect From an Internal Audit Engagement
We begin with a discussion of your business priorities, existing audit coverage and reporting expectations. Together, we define the scope, responsibilities, timing and information needed for the work.
Depending on the engagement, procedures may include interviews, process walkthroughs, documentation reviews and control testing. We discuss findings with the appropriate stakeholders and provide recommendations aligned with the issues identified. Any follow-up work is agreed as part of the engagement scope.
Why Organizations Choose LBMC
LBMC combines financial and operational audit experience with a risk-based approach that delivers practical recommendations aligned with your organization’s objectives.
Our approach includes:
- Flexible outsourced, co-sourced and project-based support.
- Experience evaluating financial, operational, compliance and governance risks.
- Clear communication with management and audit committees.
- Recommendations that account for your processes and available resources.
- Support that can adapt as your organization’s needs change.
Industries We Serve
LBMC works with organizations across healthcare, manufacturing and distribution, not-for-profit and government, private equity, real estate and construction, technology and SaaS and other sectors. Our internal audit team also serves financial services, nonprofit, insurance, technology and professional services organizations. We tailor engagement scope to the risks, processes and reporting needs involved.
Local Expertise, Wherever You Are
With offices in Chattanooga, Memphis, Louisville, Nashville, Knoxville, Philadelphia, and Charlotte, plus remote offices, LBMC partners with businesses across the region and beyond.
Internal Audit FAQs
What is a control environment?
A control environment is the foundation of an organization’s governance and internal control framework. It encompasses the policies, processes, ethical standards, and oversight that help manage risk, support compliance, and promote reliable financial and operational reporting. Internal audit evaluates the effectiveness of these controls and often works alongside SOX compliance initiatives and financial statement audits to help organizations strengthen governance and improve confidence in financial reporting.
For related guidance, read about internal controls to prevent fraud and theft.
How does internal audit differ from a financial statement audit?
Internal audit evaluates governance, risk management and controls to support management and board oversight. A financial statement audit examines whether financial statements are presented fairly, in all material respects, under the applicable reporting framework. These services address different objectives. See LBMC’s Audit and Assurance services for related financial reporting support.
Can LBMC help us build or improve our internal audit function?
Yes. LBMC helps organizations establish, enhance, or supplement their internal audit capabilities through fully outsourced, co-sourced, and project-based internal audit services. Whether you’re building an internal audit function for the first time or expanding an existing program, we develop risk-based audit plans, strengthen governance, and provide independent assurance tailored to your organization’s objectives.
Depending on your needs, we can also integrate SOX compliance and other Audit & Assurance services to create a comprehensive risk management program. When your plan calls for specialized technology coverage, we can coordinate with LBMC’s IT audit services team.
Should we outsource our internal audit function?
Many organizations choose to outsource or co-source their internal audit function to gain specialized expertise, improve flexibility, and access experienced professionals without the cost of building a full-time internal audit department. LBMC offers fully outsourced, co-sourced, and project-based internal audit services, allowing organizations to scale support based on their risk profile, regulatory requirements, and business objectives.
How often should an organization perform an internal audit?
There is no one-size-fits-all schedule. The frequency of internal audits depends on your organization’s size, industry, risk profile, regulatory requirements, and the complexity of its operations. Many organizations perform an annual risk assessment to develop a risk-based internal audit plan that prioritizes the areas with the greatest potential impact to the business.
If your organization is experiencing significant growth, implementing new systems, completing an acquisition, or facing increased regulatory oversight, more frequent internal audits may be appropriate.
How can internal audit support fraud risk management?
Internal audit can evaluate controls intended to reduce opportunities for fraud, identify weaknesses and recommend improvements. The procedures depend on the engagement scope and the risks under review. For related guidance, read about wire fraud prevention and inventory fraud risks for manufacturers.
How do industry differences affect internal audit coverage?
Your industry and operating model influence which processes and controls deserve attention. Relevant examples include fraud prevention controls in construction, financial oversight practices for churches and fraud risks in manufacturing. These resources provide context for discussing the issues an audit plan may need to address.
Can operational reviews address inventory processes?
Inventory processes may be included when they are relevant to your agreed operational audit scope. A review can examine how procedures, records and oversight support inventory management. LBMC’s article on cycle counting benefits and implementation provides related process-improvement context.
How can data analytics and AI support audit work?
Data analytics can help teams identify exceptions and focus review. AI may support selected audit tasks, with attention to governance, data security and validation. The appropriate approach depends on the engagement and available evidence. Read LBMC’s perspectives on improving audit quality with data analytics and implementing AI in financial audits.
Meet Our Internal Audit Leaders
Ready to Strengthen Your Internal Audit Program?
Let’s discuss your audit priorities, current resources and reporting needs. LBMC can help determine where an outsourced, co-sourced or project-based approach would support your organization.