If you are participating in a regulated industry it is possible that there is a mandatory requirement to have an internal audit department. Sometimes even where this is not the case failure to provide timely reporting to the regulator or any serious compliance failure can lead to serious penalties including the removal of an operating licence. In such case then it is advisable to have an internal audit department. Companies in regulated industries may also need the information from internal audit to use in their reports and submissions to regulators and, so, reliable and accurate Internal Audit information is also needed to ensure the adequacy of this reporting.
The merits of an internal audit
Assisting management to Control growth As your business grows an internal audit will also provide Confidence, control and elimination of fraud.
An internal audit if conducted properly will provide management with a powerful tool to handle business control procedures and processes more effectively, timely with less errors and help prevent and detect fraud.
Examples of where internal audit can assist management:
- Investigating and discovering how effective strategic and operational controls have been.
- Complex or highly regulated transactions, might suggest the need for the IA control to be deployed.
- The size and complexity of the firm.
- Specific problems with internal controls and an increase in unacceptable events.
- Risk or assessing risk in a constantly changing environment.
Our firm can help you to design and implement the internal audit programs for the preparation of internal audit reports that management uses for company internal audit committees.
It is essential part for Best Practice Principles an entity can apply:
It is best practice that ‘the board should maintain sound risk management and internal control systems’ and ‘should establish formal and transparent arrangements for considering how they should apply the corporate reporting and risk management and internal control principles’. Where there is no internal audit function, the audit committee should consider annually whether there is a need for an internal audit function and make a recommendation to the board, and the reasons for the absence of such a function should be explained in the relevant section of the annual report.
Some of our services for internal audit include:
- Value for money audits
- Information technology audits
- Best value audits
- Financial audits
- Operational audits