Internal Audit is a great outsource option
Internal auditors evaluate and improve your business through risk management, internal controls, and governance. The more independent they are, the better. Best practice is for Internal Audit to report directly to the Board of Directors as working within the financial reporting organizational structure limits their ability to maintain objectivity and independence in their evaluations.
The independent and objective mindset makes outsourcing of Internal Audit a particularly appealing option. And if you don’t need full time internal auditors, then outsourcing also saves you money.
Some key roles and responsibilities of an internal auditor:
Risk Assessment
Identifying and assessing risks that could affect the organization’s ability to achieve its objectives. Risks include errors and fraud in financial reporting and operational inefficiencies, cybersecurity threats, compliance violations, and strategic misalignments.
Internal Controls
Evaluating the design and effectiveness of internal controls to ensure they are mitigating risks appropriately. For publicly traded corporations, this means SOX compliance. Internal auditors can recommend and implement new controls to prevent or detect errors, reducing risk of the company losing money.
Compliance
Ensuring the organization complies with laws, regulations, and internal policies.
Operational Efficiency
Assessing the efficiency and effectiveness of operations and recommending improvements.
Fraud Detection
Identifying potential areas of fraud and ensuring adequate controls are in place to prevent and detect fraudulent activities.
Reporting
Providing clear and concise reports to management and the board of directors on findings, risks, and recommendations.
Internal auditors play a crucial role in helping organizations achieve their objectives by providing independent and objective assurance and advisory services.