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Importance of internal audit
As an insider, you might think your company’s internal controls are working well. You ask, is internal audit even necessary? However, companies without an internal audit function will not perform at its peak and may even become victims of corporate scandals. Once accustomed to business as usual (“BAU”), it is not so easy to identify the flaws and inhere nt limitations.
This is where internal audit steps in.
In truth, a company, whether large or small, needs an internal audit function. It is the key to good corporate governance and sets the tone at the top. It is an independent, objective appraisal and monitoring function within the organization, and provides assurance that the controls, processes and systems are functioning effectively and efficiently. It also acts as the last line of defense for the company by detecting human error and fraud.
Internal audit’s roles and responsibilities:
How can internal audit achieve the above objectives?
Implementation of an internal audit system
A successful internal audit must be:
To achieve this, internal audit can be in-house, co-sourced or fully out-sourced. There is no one-size-fits-all model: it depends on your organization’s strategy, size, resources, regulatory environment etc. You should consider the factors holistically to determine which model suits your company.
PKF Hong Kong can provide internal audit solutions to your company. Whether you adopt an in-house or out-sourced model, we will be here for you every step of the way. We provide immediate access to audit expertise, insight into the best practices, and higher audit productivity. With our help, you can be confident that your internal controls are functioning well.
For more information on how our services can help your business get in touch.