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.
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:
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: