- Internal Audit.
- Governance & Control.
- Risk Management and Policies.
Internal audit is a key pillar of good governance. It provides the board of directors, the chief executive officer, and stakeholders with an independent view on whether the organization has an appropriate risk and control environment, whilst also acting as a catalyst for a strong risk and compliance culture within an organization.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Why is internal audit important? Internal audit is a key component in the assurance structure of an organization. It is a cornerstone of good corporate governance in organizations and can play an important role to improve management and accountability, both financial and non–financial. Internal audit can be a pivotal activity to provide assurance to the board of directors that the organization is governed effectively.
What does internal audit do? Organizations establish/hire an independent internal auditor to provide continuous review of the effectiveness of risk management, control, and governance processes. Internal audit does this by:
- Providing independent, unbiased assessment of the operations of the organization.
- Providing management with information on the effectiveness of risk management, control and governance processes.
- Acting as a catalyst for improvement in risk management, control and governance processes.
- Being an adviser that tells management what it needs to know, when it needs to know it.
- The purpose of internal audit is to support the board of directors.
- Assessing reliability and integrity of information.
- Reviewing assets are safeguarded.
- Assessing compliance with laws, regulations, policies and contracts.
- Assessing efficiency, effectiveness and economy of business activities.
- Reviewing opportunity for fraud and corruption.
- Following–up previous audits to assess if remedial action has been effectively implemented.