An internal auditor is a professional who assures that an organization’s risk management, governance, and internal control processes are effective.
Audits completed by experienced auditors are designed to mitigate an institution’s risks and improve its business practices.
Your internal auditor will work with your institution to assess risks, review internal controls and make recommendations for improvement.
This insight will help inform business decisions and let you know if your current team is moving towards optimal compliance or if more work is needed to avoid penalties and other adverse consequences.
Internal Auditor Responsibilities
Internal audits are used to help ensure an institution has internal controls in place to protect its assets, safeguard against fraud and errors, and manage risks appropriately.
The internal auditor’s responsibilities will vary depending on the size and complexity of the institution, but can generally be broken down into the following:
- monitoring, analyzing, and assessing risks and current controls in place at the institution
- reviewing the institution’s adherence to state and federal policies
- making recommendations to the institution’s owners or governing board
To sum it up, they collect information on how the institution is operating and reveal what it is doing well and what needs to be improved.
Using an outsourced, professional auditor with no personal connection to the organization is a great business investment.
Internal audits completed regularly ensure the company complies with current regulations and that every department is working efficiently.
Top 10 Benefits of Working with an Internal Auditor
An internal auditor brings many benefits to an organization, including:
1) Independence – An internal auditor is independent of the organization’s management and is, therefore, able to provide objective assurance.
2) Expertise – An internal auditor has expertise in risk management, internal control, governance, and auditing. This expertise allows them to provide insights and recommendations that improve an organization’s operations.
3) Objectivity – An internal auditor is impartial and does not have a vested interest in the outcome of an audit. This objectivity allows them to provide unbiased assurance.
4) Insight – An internal auditor has a deep understanding of an organization’s business and operations. This insight allows them to identify risks and opportunities that others may not be aware of.
5) Added value – An internal auditor provides value-added services that improve an organization’s operations. These services include risk assessment, internal control reviews, financial statement audits, and compliance reviews.
6) Security – An internal auditor’s responsibility is to evaluate the institution’s control environment. These audits examine internal controls such as actions, systems, processes, and monitoring to ensure they are designed and implemented effectively.
7) Efficiency – Internal audits identify redundancies in company practices, procedures, and processes. Recommendations are then made on how to streamline to save time and money.
8) Compliance – Internal audits examine how the institution adheres to laws, regulations, and industry best practices and whether or not your business complies. Solutions to shortcomings will be advised by the auditors.
9) Awareness – An effective internal audit program helps your institution improve its effectiveness by ensuring all pertinent employees understand and abide by policies and procedures. This helps reinforce ethical behavior within the organization and helps mitigate risk.
10) Assurance – Internal audits allow for an independent review of the institution’s operational processes. This allows you to feel confident about the company’s operations. You can be sure that everything is done according to the best industry standards, policies, and procedures.
Ask Us About Our Internal Auditing Services
Radd, LLC has built an experienced professional team of auditors that can help provide insight to strengthen your organization.
For more information on how your business can build or improve its internal control processes and streamline operations while mitigating risks, contact us here.