Internal audit effectiveness verification

An internal audit department is set up in an organisation in order to improve its operational activities and also to add value. This function is carried out by analysing and reviewing the activities of various business areas. Internal audit enhances the effectiveness of the organisational governance, risk management and internal control principles. It also ensures that the activities and operations are compliant with regulations and internal procedures. An internal audit, when properly executed, may positively influence the achievement of business objectives and it adds value to the organisation.

However, the internal audit function is rarely verified. Executives do not always know whether the audit function is effective and whether objectives have been achieved. This is why it is important to monitor whether audit activities are carried out in accordance with the strategy and the organisation's standards, whether these meet the expectations of management and whether they are adequately assessed by the various departments. Regular monitoring helps to ensure the effectiveness and reliability of internal audit.

How to verify the internal audit function?

Internal audit control is the analysis and verification of the functioning of this area in the organisation in terms of efficiency, compliance with objectives and company policy. The end result is the identification of possible irregularities and the formulation of potential changes and improvements.

Illustrative scope of the audit department's internal control:

1. An analysis of the structure of the entire organisation and the structure of the internal audit department
2. To confirm the business objectives, the main challenges and risks, and the expectations of the internal audit activities with the company's managers
3. Becoming familiar with the functioning of the internal audit area
4. An analysis of the audits carried out by the internal audit department
5. Documentation of processes within the internal audit department
6. Recommendations for changes - formulation of improvement suggestions
7. Assistance during implementation of accepted change proposals

Audit by independent experts

External experts provide an impartial evaluation and a different perspective on an organisation. They are competent and experienced in the area of internal audit control, carried out for companies from various sectors. The external auditor's tasks include:

1. To verify compliance with assumptions, procedures and regulations
2. To verify whether the internal audit function realistically meets management expectations
3. To verify the extent to which internal audit activities improve the organisation's operations and add value to the organisation

Benefits of periodic verification of internal audit area carried out by Crowe experts:

• Impartial assessment of internal audit activities
• Increasing the efficiency of the area
• Improving the ongoing audit processes
• Agreeing on an optimal placing of the area in the organisation
• Verifying that external audit activities support all the organisation's goals and management expectations
• Verifying that all necessary areas are audited and analysed
• To verify whether, thanks to internal audit activities, all risks, areas requiring improvement and key processes for achieving company objectives are identified and monitored