Why is Internal Auditing important for businesses?
We're often asked: “Why is internal auditing so important for our business?”
The answer is simple.
Internal audits help organisations accomplish business objectives, create a systematic approach to monitor and evaluate the processes and procedures and create a roadmap for improvement strategies. Certification is based on Plan, Do, Check and Act. Internal Auditing acts as part of the Check function of certification.
Best Practice CEO, Kobi Simmat surmises: “Internal auditing is about the cycle of self-evaluation on the business and the cycle of looking at how you’re operating and how you can improve. It’s like going to the gym and getting on the scales. How did we go and what else could we improve?”
Many large companies have already discovered the potential internal auditing can unlock in business improvement, and have included Internal Auditing roles and functions in their businesses. Here is a free internal auditing tool, which you can choose dependant on your standard.
Internal audits may seem like a luxury to many small to medium sized businesses. The truth is, they can’t afford NOT to implement internal auditing in their businesses. How else can you improve if you are not measuring your success? How can you improve if you are not looking for opportunities? The answer is, you can't, and this is why internal auditing is important for any business, regardless of size.
How can you make it cost effective for your business? Internal auditing can indeed be a function of existing employees. However, employers need to be mindful that one key tip for success is to plan and set out time for employees to fulfil the internal auditing function of their role. This will ensure employees are able to provide meaningful insights and improvement strategies for your company, as well as fulfil any management system requirements of 'carrying out internal audits at planned intervals'.
For more quick tips and tricks you can implement right away, subscribe to our YouTube Channel, BestPracticeTV.