Internal Audit Objectives
Internal audits provide a value-added services to company. These include detecting and preventing all fraud, testing internal control, and monitoring compliance with company policy and corporate governance. Smaller companies may require these functions even more than large companies. A small company simply cannot afford employee fraud, waste, or a government fine and penalty. Establishing an internal audit function provides a vital step in the growth of a company, especially for small and medium business.
Internal auditors now are concentrating on providing oversight in other aspects of company operations. The main functions of the internal audit are to ensure that financial controls are implemented and working, and that waste and fraud are minimized.
An internal auditor is working for the board and the CEO to provide an independent, objective perspective on various issues that really matter to the organization and its success over the long haul.
Internal Audit Functions
Three (3) main areas of focus for a successful internal audit function: governance, risk management and controls.
From a governance perspective, you want to ensure that the company is structured in such a way that goals are realistically achievable and that the right tone at the top is being set, especially regarding ethical behaviour.