Internal auditing is an important function of any information security and compliance program and is a valuable tool for effectively and appropriately managing risk. Are we ensuring we are doing what we say we\u2019re doing? Are there gaps in our policies and procedures? Are there any areas for improvement? Are we meeting our compliance goals? ? Let\u2019s explore these important questions below.<\/p>\n\n\n\n
\nThe role of internal audit is to provide independent assurance that an organization\u2019s risk management, governance, and internal control processes are operating effectively.<\/h3>\nThe Role of Internal Audits<\/cite><\/blockquote>\n\n\n\n
Internal auditing objectively enhances an organization\u2019s business practices. It involves gaining insights into an organization\u2019s culture, policies and procedures, and it contributes to the oversight of the board and management. This contribution is made by verifying the effectiveness of internal controls, including operational efficiency, risk mitigation measures, and compliance with relevant laws and regulations.<\/p>\n\n\n\n
5 Reasons Why Internal Audits are Important<\/h3>\n\n\n\n
Internal auditing programs are critical for the surveillance and assurance of the proper protection of your business assets against threats. Additionally, they verify the alignment of your business processes with documented policies and procedures. Let\u2019s examine the significance of internal auditing through five different lenses and how it contributes to your organization\u2019s compliance with prevalent frameworks and regulations:<\/p>\n\n\n\n
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- Provides objective insight<\/li>\n\n\n\n
- Improves efficiency of operations<\/li>\n\n\n\n
- Evaluates risks and protects assets<\/li>\n\n\n\n
- Assesses organizational controls<\/li>\n\n\n\n
- Ensures legal compliance<\/li>\n<\/ul>\n\n\n\n
Provides Objective Insight<\/h3>\n\n\n\n
You can\u2019t audit your own work without having a definite conflict of interest. To remain objective, your internal auditor or team cannot have any operational responsibility. In cases where resource constraints impact smaller companies, it\u2019s acceptable to cross-train employees in different departments for auditing purposes. By providing an independent and unbiased view, the internal audit function adds value to your organization.<\/p>\n\n\n\n
Improves Operations Efficiency<\/h3>\n\n\n\n
By objectively reviewing your organization\u2019s policies and procedures<\/a>, you can rest assured you are following those policies and procedures appropriately, and that they adequately mitigate your company\u2019s unique risks.<\/p>\n\n\n\n
Through ongoing monitoring and evaluation of your processes, you can identify suggestions for enhancing their efficiency and effectiveness, ultimately enabling your organization to trust its processes rather than individuals.<\/p>\n\n\n\n
Evaluates Risks and Protects Assets<\/h3>\n\n\n\n
An internal audit program assists management and stakeholders by identifying and prioritizing risks through a systematic risk assessment. A risk assessment<\/a> can help to identify any gaps in the environment and allow for a remediation plan to take place.<\/p>\n\n\n\n
Your internal audit program will help you to track and document any environmental changes and ensure the mitigation of any found risks.<\/p>\n\n\n\n
Assesses Controls<\/h3>\n\n\n\n
Internal auditing is beneficial because it improves the control environment<\/a> of the organization by assessing efficiency and operating effectiveness. Internal auditing answers questions like: Are your controls fulfilling their purpose? Are they adequate in mitigating risk? Controls are only helpful if they are helping your organization meet its goals.<\/p>\n\n\n\n
Ensures Compliance with Laws and Regulations<\/h3>\n\n\n\n