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Why Internal Audits Are Essential To Any Business

Brought to you by IBEC Intelligence


What is an internal audit?


According to the Institute of Internal Auditors, “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.”


In contrast to an external audit which is conducted by impartial, independent auditors from certified bodies, internal audits are performed by someone employed within your own organization or an independent consultant employed by your organization. Internal auditors report their finding to your organization. The audit report provides a summary of the investigation and offer key observations in which your company can improve from.



What are the benefits?


Most management system standards require the establishment of an internal auditing program to verify that the management system meets the requirements of the applicable standards and is effectively implemented and maintained.


Here are some benefits that an Internal Audit function can provide to an organization and its management:

  • Satisfying the requirement of management system standard,

  • Ensuring the management system is effectively implemented and maintained,

  • Identifying gaps, non-conformances and inefficiencies,

  • Identifying opportunities for improvement ,

  • Preparing the organization and employees for external audits,

  • Reducing non-conformance findings from certification bodies,

  • Ultimately, increasing accountability within the organization.


While internal audit may not have always been perceived as adding value to organizations beyond checking a regulatory box, it plays a vital role in overall operational enhancement.

If you would like more information, schedule a free 30-minute consultation with an IBEC expert to learn more about IBEC’s internal audit services.


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