Current economics and expectations of stakeholders in today’s business environment have placed the internal audit function for all organization systems in a new and challenging role of providing value to the organization through objective .
Objectivity is a bit of an elusive target. Objective by what standards? By who’s measure? How can you be objective in a very subjective world and produce system reviews that have value for your business?
I recently read an article on the disadvantages of hiring an independent auditor, and was surprised that the article didn’t mention the advantages external resources can provide.
The article I read (at www.chron.com) talked about disadvantages such as an independent auditor taking time to get up to speed on the business; the cost of an independent auditor being higher than salaries of internal audit functions; the time it takes to find the right person for the work; and fears around confidentiality.
I wouldn’t necessarily argue that these are legitimate concerns. But, I would offer the following advantages in using independent business audit resources in your audit plan:
Internal audit functions are essential to good business because the right auditing system and team can save money, find your business blind spots and provide much needed perspective. But a STRATEGIC Audit Plan is critical to using your audit team for the best results.
Like any other part of a business, your internal auditing group needs to put in place a short and long term plan that can meet your needs.
It starts with a close look at the expectations for the audit function and is followed by a clear and concise statement of your mission for audit activities. Sound familiar? That’s because the process for setting up a Strategic Audit Plan runs parallel to any other business initiative.
Given the global economic changes, downturn and risks, now is the best time to conduct a business review so that your business is prepared for the challenging and unpredictable times ahead. In fact, PriceWaterhouseCoopers, LLP is advising that audits of organization systems, policies and procedures in a number of key areas is more critical now than ever before.
A sound and thorough audit can ensure you are doing everything you can to manage through the U.S. and world economic situation and be prepared for the future with a focus on cost containment – but not cost containment at any cost.
Here are some of the areas recommended for in depth reviews with an eye on both cost containment and future needs: