How to Ensure an Efficient Internal Audit?
Internal audits refer to in-depth reviews of the procedures and finances of an organisation. Such an evaluation includes one division of an organisation or the whole entity. The auditors will look into the project systematically using different audit approaches before writing reviews from the observational notes. The internal audit process can be quite time-consuming and expensive for some entities as it involved not only double entries accounting (Also see Advantages of double entry accounting) but all other business process of an organisation.
However, if the companies have an experienced audit department or seek help from the audit firms in Johor Bahru, the process can be accurate and efficient.
Undoubtedly, this allows the company to benefit from it, and the advantages will outweigh the cost for that audit. If you are eager to know the cost-effectiveness of the internal audit process of your company, assessing the reviewers, as well as evaluating the process, will be a good way.
Check whether there is any relationship between the auditors and the company’s employees
There must be a clear separation between the auditing agents and the central team of staff so that the impartiality is well-maintained. This is crucial for an organisation so that the internal audit (Also see What is Forensic Audit?) is always true and fair.
Assess how efficient is the process of internal audit
The auditors should focus on the process, accuracy and efficiency of the final results. If there is any room for improvement, the auditors should give suggestions to the company to boost the speed and accuracy of the audits and improve the effectiveness of the process in the future.
Consider the whole audit scope
No matter the audit involve only a department or the whole organisation, before the internal or external auditors start auditing, they need a specific goal (Also see The Audit Objective of External and Internal Audit) . The management of the company should review the notes of the audit team to determine whether the auditors are complying with the protocols, including but not limited to audit reasonableness test, so that they may achieve their goal.
Assess the performance of each auditor in the audit team
The organisation should inspect each set of notes and determine whether every auditor concentrate fully on the assigned tasks.
Review the performance of the senior auditors when they supervise their team and manage the audit process
The company should pay attention to the senior auditor’s performance. Compliment them and their team if they completed their job well. If there are any weaknesses, give some suggestions so that they may improve in the future.