Visualize internal audits as a quality management tool that helps improve and assess critical business processes. This form of auditing enables you to determine the operational aspects of
your business and identify areas that need adjustments. Essentially, an internal audit is a vital aspect of a productive quality management system.
The concept of auditing has become a crucial aspect of modern business practices. With the increasing statistics of financial fraud, about 49% currently. Auditing helps determine how accurate a business’s financial reports are and points out loopholes in a financial statement. Auditing provides a ‘truth-test’ analysis of a company’s financial reports. Auditing is an essential aspect of the business process that mainly external entities could carry out.
An external audit is a financial examination that an independent accountant conducts. The sole purpose of an external audit is to provide confidence and assurance to lenders, stakeholders, or investors about the financial statements issued by their company that they are truly and fairly present their organization’s results and financial position.
Bogged down by the time-consuming nature of the audit, your company’s internal auditors even often suffer from ‘Audit Exhaustion.’ But all it takes is to pick the best approach to make a difference by allowing the consistency and smooth flow of the internal audit process.