Adding Value Through Internal Audit: Making Things Run Better (Part 2/3)

Adding Value Through Internal Audit: Making Things Run Better (Part 2/3)

Welcome back to our series, "Adding value through Internal Audit." In our first post, we talked about how internal audit acts like a skilled navigator, helping organisations identify and manage risks to protect themselves and confidently move towards their goals.

Today, we're shifting gears slightly to look at another significant way internal audit adds value: by helping to make your business operations run more smoothly and effectively.

Think about everything that happens in your company, from the moment a customer places an order to the time they receive their product, or from the point an invoice arrives to when it gets paid. These are all processes – the sequence of steps your teams follow to get things done. Every business is built on countless processes, big and small.

Sometimes, these processes can become like tangled spaghetti. Steps might be duplicated, handoffs between teams aren't clear, there might be unnecessary delays, or things are just done in a way that creates extra work or errors. This isn't usually because people aren't trying; it's often just how things evolve over time, especially as a company grows.

Internal audit takes a close look at these processes. We walk through the steps, talk to the people involved, and use our understanding of best practices to see how things are working. We're looking for those bottlenecks, the points where things slow down, the areas where errors are more likely to happen, or steps that just don't seem to add much value to the outcome.

But here's where the value comes in: it's not about pointing fingers. It's about identifying opportunities for improvement. Internal audit provides clear, actionable recommendations on how to untangle that spaghetti. This might involve suggesting clearer steps, better use of technology, improved communication between departments, or stronger checks at crucial points to catch errors early.

The impact of these recommendations can be significant and tangible. Smoother processes mean less wasted time and resources (which saves money!). They can lead to faster turnaround times (making customers happier!). They can reduce errors (avoiding costly rework or reputational damage!). Essentially, internal audit helps teams figure out how to work smarter, not just harder. It’s about optimising the engine of the ship we talked about last time, making sure it runs as efficiently as possible.

By providing an objective look at how things are done and offering practical suggestions for improvement, internal audit helps the business become more efficient, more effective, and ultimately, more successful in its day-to-day operations.

In conclusion, beyond risk management, internal audit adds significant value by reviewing business processes, identifying inefficiencies and weaknesses, and recommending practical ways to make operations run better, saving time, reducing costs, and improving outcomes.

In our final article, we'll explore how internal audit provides forward-looking insights and contributes to strategic thinking, helping your organisation prepare for what's around the corner. Don't miss Part 3!