In today’s business world, companies need accurate financial and nonfinancial information to evaluate how well their business is operating. Information regarding the strength of a company’s internal control environment is crucial to fully evaluate its performance.
Internal audit services can be used throughout a company’s operations. The primary purpose of internal audit services is to help to identify and assess operational, financial and compliance risks that a company faces, and then to identify and assess the internal controls in place to mitigate those risks. Internal audit services involve both process and system reviews.
Furthermore, internal audit services can be used to identify areas for operational improvements within a company.
Areas of Focus Can Include:
- Facilitation of the risk assessment process with company management.
- Documentation of process and/or system flows.
- Assessment and testing of existing internal controls.
- Identification of internal control improvements in financial, operational and compliance areas.
- Performing a “best practices” review of your existing internal audit function to identify areas for improvement.
- Or, a combination of the above.
We can target specific processes based on requests from management and the audit committee, or we can review specific processes based on the results of your risk assessment.
Internal Audit Benefits Include:
- Assistance with management’s documentation and assessment of the internal control structure as required by the Sarbanes-Oxley Act.
- Assistance with management’s identification of significant risks to company operations.
- Identification of internal control weaknesses within a company’s control environment.
- Identification of problem areas in company operations.
- Reduction of waste and inefficiency.
- Development of comprehensive process/system documentation.
- Improved communications between operating units and company management.
Establishing and Maintaining an Effective Control Environment
Proactive companies use internal audit functions to help establish and maintain an effective control environment. They understand that internal audit not only provides significant knowledge and expertise in the areas of risk identification and control implementation, but it helps to communicate the importance of internal controls to personnel throughout the organization.
In addition, an internal audit function helps to promote continuous process improvement within all significant areas of a company’s operations – ultimately protecting shareholder value.