Introduction to Internal Audit Services
Table of Content
- Management Assurance
- Performance Management
- Ongoing Improvement
- Achievement of Objectives
- Cost Optimization
When a company suddenly collapses, the often-resounding question is “what went wrong?”. A breakdown in the internal control system is the usual cause. An effective internal control system helps your organization in achieving its objectives and ensures its perpetuity. Through our Risk Based Internal Audit service, we evaluate the effectiveness of existing internal controls and recommend improvements in the internal control system.
Assuming that you are running a large company, I am sure that as the owner of the company you must have established certain systems and processes to control your business operations. You must also be spending a good amount of time monitoring the activities of your employees and ensuring that they are following the processes and systems that will lead to achievement of your company’s objectives.
As you start delegating work and decentralize your operations, you may have these apprehensions:
- Are the systems that I implemented working?
- Are my employees following standard processes?
- Is my company complying with the applicable laws?
- Are my employees adhering to the company policies?
- Are my operations effective and efficient?
- Are the transaction records and MIS Reports accurate?
Internal Audit provides an assurance to you as a business owner towards the above apprehensions and towards effectiveness of internal controls in your organization.
You ever wonder if there is a universal tool for measuring the performance of employees from different departments. For employees of some departments like Sales, it is easy to measure performance, but for other it becomes subjective. We provide Internal Control Effectiveness (ICE) Index for each department that helps measure performance of all employees objectively.
As pointed out by Robin Sharma “what gets measured, gets improved”. This ICE Index acts as a tool to measure employee performance as a part of your performance management system, which in turn leads to improvement in their performance.
With fast changing technology, your business processes and soon become redundant. Internal Audit help you keep identifying exceptions and scope for improvements on an ongoing basis so that your business processes stay updated and lean.
It is like having an extra pair of eyes and ears that can help you with this monitoring? Someone who periodically reviews your operations (core departments and as well as support functions) and reports the deviations, its risk impact, its root causes and recommendations to improve them.
This results in continuous improvement in processes, it becomes your competitive advantage over your competitors. A competitor can copy your products or can hire similar employees, but it is not easy to copy a culture where you strive for continuous improvement.
When someone is doing the job of monitoring and reporting (independently) then you can focus your energy on how to grow the company. Even well established companies receive value addition through the recommendations that we give through of these audits.
Achievement of objectives
Internal controls are activities that ensures achievement of your company’s objectives. Internal Audit helps measure and maintain effectiveness of Internal Controls thereby ensuring that your company achieves its objectives.
Our approach towards Internal Audit includes a systematic study and analysis of business processes of your company with an objective to improve processes, optimize revenue and profits, improve efficiency in utilization of resources, and reduction of costs and cycle time.
Our team of Internal Auditors facilitate your managers in implementation of internal controls by recommending feasible control practices in line with your organization’s objectives and risk portfolio.
“The most dangerous kind of waste is the waste we do not recognize.” – Shigeo Shingo