Internal audit management refers to the process of planning, executing, and reporting on audits within an organization.
It is a requirement in many countries for large or publicly traded corporations to have an internal audit function. Harrington Group International has taken steps to ensure that all of our clients meet their audit requirements promptly. We value this ongoing working relationship and our role in promoting a culture of compliance within the companies we work with.
Benefits of Internal audit management
1. Improve the efficiency of business processes
The internal audit function is a key component in the governance and management of the organization. It helps to ensure that policies, procedures, and management systems are followed. Ultimately, compliance with internal controls and the improvement in business processes contribute to an increase in efficiency and profitability within the organization. The internal audit team is often the first line of defense against fraud and other illegal activities within a company. The internal audit function can be very effective in identifying issues early, reducing the risk of fraud and theft, as well as protecting the company’s legal standing.
2. Demonstrate Commitment to Compliance
With our clients, Harrington Group International believes an internal audit function is a vital component in establishing and maintaining effective governance controls. An explicit commitment to the importance of compliance within a company is often communicated by the presence of an internal audit team.
3. Develops Business Leaders
The moving force behind Harrington Group International’s success has been our ability to recruit and retain highly professional people who work together as a team. The internal audit function is also challenging and provides opportunities for business leaders to advance their careers within the organization. The internal audit function is often one of the first opportunities for department heads at their company to gain exposure to the organization’s key business issues and demonstrate their ability to meet organizational objectives.
4. Saves Money
The expense of an internal audit function is recognized by all successful organizations as a vital component in the identification and resolution of fraud and other illegal activities within the organization. The investment in this function can be repaid many times over through the savings realized by the organization due to early identification and resolution of fraud.
5. Improves Productivity
Our experience working with clients has shown that the internal audit function is often a driving force behind an organization’s productivity and cost performance improvement. Within this context, internal audit is viewed as a central component of the company’s governance controls. Revolving door, back room, or middle management/senior executive staff members involved in fraud or other illegal activities can be demoted or passed over for advancement.
6. Mitigates Legal Risk
An effective internal audit function is a critical component of an organization’s risk management. By examining an organization’s internal controls and accounting records, the internal audit function can help to identify fraud, theft, and other illegal activities. This helps to ensure that the company remains compliant with legal practices and regulations.
The early detection of fraud and other illegal activities reduces litigation risks and may have a positive impact on the company’s overall financial situation.
At Harrington Group International, our clients understand the importance of internal audits in support of an organization’s effective governance. We have established a culture of compliance within these clients based on the fact that the internal audit function is a key component of this responsibility. This ensures that our clients are meeting their audit requirements promptly and that they continue to meet their regulatory requirements.