Introduction
Internal auditing is a necessary element for business, which helps to understand processes and risks during its conduct. There are three distinct audit abilities that allow it to provide effective advice.
Internal Audit Functions
Risk Identification
The first of them is the identification of potential risks. The internal audit process is a means of controlling and preventing risks within an organization. The main task of the auditors is to ensure the safe operation of the enterprise and identify potential risks in all possible areas to use these factors for further improvements (Urton et al., 2017). For example, these risks may include IT security issues, phishing mailings, and the distribution of malware on a computer. Assessing all risks, an internal audit is able to provide full information about the vulnerability of the company and the impact of risks on business conduct.
Process Performance Evaluation
The second ability of an internal audit is to evaluate the performance of processes occurring inside the company. In this context, the main objective of auditors is to assess the level of process optimization, the quality of documentation and their compliance with the long- and short-term goals of the company (Lenning & Gremyr, 2022). This ability also includes the process of studying the structure and documentation of processes, which include the production of products and their further sale.
Policy Compliance
Finally, the third capacity of internal audit is to monitor the compliance of internal controls with relevant policies. For example, auditors should check the company’s security protocols, security policies, and other related documentation (Lenning & Gremyr, 2022). In our context, this applies to the verification of IT security protocols, as well as general inspections of the security of e-mail use by employees of the company.
Conclusion
Thus, internal audit is a way to provide up-to-date information about potential problems of an enterprise and allows it to effectively manage and eliminate these risks.
Reference
Lenning, J., & Gremyr, I. (2022). Unleashing the potential of internal audits: a review and research agenda. Total Quality Management & Business Excellence, 33(9–10), 994–1010. Web.
Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Cris Riddle, Mark Salamasick, Paul J. Sobel. (2017). Internal Auditing: Assurance & Advisory Services. Internal Audit Foundation.
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