Is This Your Situation: Considering an Internal Audit

Jun 15, 2021 | Accounting & Audit Updates, Business Planning, Tax News

Audit

An internal audit conducted by an objective consulting group adds value and improves a company’s operations. It can help even small companies accomplish their objectives by adding a systematic, disciplined approach to evaluate and improve the effectiveness of management, control and governance processes.

How do you keep up with the numerous regulatory and protection acts intended to provide assurance to individuals, investors, and boards and management of organizations regarding the financial and operational integrity of your company? Using an internal audit gives a broader focus, including financial information, operational objectives, risk management and compliance.

Consider Outsourcing

As a first step, consider outsourcing if you don’t have an internal auditor on staff. This way, you have an internal audit function for ongoing assessments of your company’s system of internal controls. This process also will check on risk management at your firm.

You can use an outsourced firm for internal audits in several ways. The goal, however, is the same: to ensure the proper degree of objectivity and independence. You can expect the outside audit firm to leverage technology-enabled auditing practices, building on your existing methodology as a framework. The third party will execute and track a risk-based internal audit plan.

Manage Risk

This process will allow your company to better manage process and technology risks, efficiently integrating technology within critical business processes. The end result produces managers who better understand and monitor the performance of core operations and support functions while ensuring the proper level of control.

You may consider a continuous full-service outsourcing arrangement or one-offs, but however you choose the frequency of an internal audit, here are some more benefits to look for:

  • Assurance to external parties and compliance with laws and regulations that apply to your firm.
  • A completely independent process using standard industry practices.
  • Technical and analytical skills so that proper assessments can be made of core processes.

Reduce Time and Costs

Overall, an internal audit by a third-party organization should help you eliminate the time and cost that would be involved in sourcing, hiring, training and retaining skilled personnel for core and noncore competency areas. Also, you should be able to focus on your strategic initiatives to improve resources and determine where best to put them.

An internal audit should focus on not only past information but also current operational objectives, future risk mitigation and organizational success. Give us a call to see how an outsourced internal auditor can use its expertise in technology, business administration, finance, data analytics and accounting to benefit your company.

Questions? Contact us at 703-218-3600 or click here. To review our business planning articles, click here. To learn more about MCB’s audit services, click here. To learn more about MCB’s tax practice and our tax experts, click here. 

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