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.
Managers are responsible for designing control processes that provide reasonable assurance the following business objectives can be achieved:
- Effective and efficient operations
- Compliance with laws and regulations
- Reliable financial reporting
Internal auditors evaluate how well the control processes designed by managers function, and therefore the extent to which managers can have reasonable assurance business objectives will be realized. The internal audit function reports to top management and normally has direct communication with the audit committee and the board of directors. Because of their expertise and thorough knowledge of operations, internal auditors often fulfill a consulting role to top management.
Internal auditors should be independent of the activities they audit. Internal auditors are independent when they can carry out their work freely and objectively. Independence permits internal auditors to render the impartial and unbiased judgments essential to the proper conduct of audits. It is achieved through organizational status and objectivity.
The organizational status of the internal auditing department should be sufficient to permit the accomplishment of its audit responsibilities. The director of the internal auditing department should be responsible to an individual in the organization with sufficient authority to promote independence and to ensure a broad audit coverage, adequate consideration of audit reports, and appropriate action on audit recommendations.
Objectivity is an independent mental attitude which internal auditors should maintain in performing audits. Internal auditors are not to subordinate their judgment on audit matters to that of others. Designing, installing, and operating systems are not audit functions. Also, the drafting of procedures for systems is not an audit function. Performing such activities is presumed to impair audit objectivity.
In today's challenging business environment, there is tremendous opportunity for the internal audit function to contribute more to the organization than ever before. Many companies are now outsourcing their internal auditing, realizing the need to remain focused on their primary business function while taking advantage of the benefits outsourcing provides.
As your internal auditor, Finlay & Associates will bring a wealth of experience and expertise to your organization. We will provide an independent and fresh perspective of your company's operations in a cost-effective manner, leading to new and innovative ideas for improvement in the form of:
- Cost reductions
- Improved operating efficiency
- Increased revenue and cash flow
- Internal control enhancements
- Fraud detection and prevention
- Insight into key functional areas of your organization
By outsourcing your internal auditing you can also reduce recruiting and turnover issues for your organization, gain easier access to highly qualified professionals, and expand or tighten your internal audit budget without affecting staffing. Additionally, you'll have the potential to reduce, or at a minimum, supplement procedures performed by your external auditor.
Finlay & Associates internal audit specialists will provide you with professional and objective investigation, reporting and analysis along with a keen understanding of major issues facing your organization. Our solution-oriented approach will help you meet the challenges of today's business environment while adding value to your organization.
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