Conducting an audit of compliance of all units of the company with goals or procedures, reporting the result to the owner or managers of the company.
What Does Internal Audit Mean in the Private Sector?
An effective internal audit activity brings great benefits to companies.
– Identifying and effectively managing internal and external risks aimed at preventing the company from achieving its goals and objectives;
– Optimizing costs and ensuring efficiency in operations;
– Prevention of losses due to errors, abuses or cheats;
– Early detection and prevention of unforeseen and potentially devastating events for the company. Minimizing the damage caused by such events;
– Ensuring that the company captures opportunities in the internal and external environment;
– Increasing the operational effectiveness of the company;
– Developing Corporate Governance practices and improving the company’s reputation;
– Providing support to increase the company’s resilience to economic, financial and real sector crises;
– Protecting the reliability and accuracy of operational and financial data used by the company’s managers in decision-making through financial reporting made by the company to the public;
– Protection and registration of company assets;
– Ensuring compliance with the laws and regulations to which the company is subject;
– Apart from the internal audit activity, neither accounting, tax nor inspection is the starting point of modern internal audit practices that can provide all of the above-mentioned benefits. The point of departure is definitely the risks that threaten the company’s goals and objectives, as well as the controls on them.