Internal audits are one of the most imperative parts of business management. WeMark, an ISO 9001: 2008 Certified Company highlights that, in such a competitive commercial scenario, internal auditing has become crucial for helping the organization in achieving its objectives. It involves a comprehensive evaluation of all the aspects of a company. Internal auditing identifies the loopholes in management and staff and helps in alleviating them.
Undertaking an internal audit function is important for the overall growth of a business. The success of a company is directly determined by it as any business cannot afford any kind of fraud. Any kind of fraudulent or unproductive activity poses a great threat to an organization. As a matter of fact, a business cannot be successful if it does not have a systematic auditing and reviewing function.
Internal audits are mainly undertaken to bring about a major change in the operations of an organization. They are designed keeping in mind the strategic needs of an organization and are carried out for all the sectors (public, private and not-for-profit). They strive to improve the effectiveness, efficiency and risk management of the company. Helping the organizations in adopting a systematic approach to evaluate its overall success, internal auditing helps them in accomplishing its objectives. They provide a complete panorama of a company’s success scale and helps in the evaluation of data and business processes. Internal auditing is also helpful for the employees as it helps them in analyzing their performance and overall growth.
WeMark India states that the benefits offered by internal audits are wide-ranging. Having the major concern of enforcing integrity and accountability, internal auditing provides a number of key services to an organization. They detect all the fraudulent activities and help in keeping a check on them in the future. The areas where efficiencies or innovations might be required are also highlighted by internal auditing. The risk of errors in the future is also eliminated by internal auditing to a great extent. They also have a major impact on the effective operation of an organization. Thus, internal auditing has a great importance for all the companies.
The internal control and working of a company is completely monitored by internal auditing. They are considered to be an objective source of independent advice which are a great help for the governing bodies and senior management.
The professionals who carry out internal auditing are called internal auditors. As a matter of fact, internal audits are more effective and required for small companies as compared to the large companies. However, it is imperative to ensure that internal auditing covers all the areas of an organization in order to make the best use of it. It is also recommended to undertake appropriate measures and remedial actions to correct the loopholes and short-comings highlighted in the auditing process.
Thus, undertaking internal auditing on regular intervals is imperative to ensure the proper functioning of a company and ensuring its long term success.