Streamlining processes through internal audits
The first phase of audits for the year 2020 has commenced. But the results of the survey start off with two remarkable figures. Firstly, less than half of the CFO respondents can rely upon an internal audit department. Secondly, only 13 percent of those companies state that internal audit is part of their daily routine. The majority execute an internal audit only once a year. Considering 70 percent of the participants conduct activities abroad, one would think these companies would value a better maintained internal audit department. We believe that they could get more opportunities to streamline processes if they did.
More potential to be found in internal audits
Internal audits have a lot of potential, but it often remains unexploited. Aside from the fact that internal audit is a means to gain insight into internal processes, it also allows for a more efficient way to track down fraudulent activities, or to increase the overall efficiency of the company. This may require an investment, but a worthwhile one.
However, a company can only succeed in properly maintaining internal audit when there are the people and the means to do so. And there is also the danger of a conflict of interests, as internal audit evaluates the companies’ own finances. That is one of the reasons why a company may wish to rely on external consultants instead.