Adding Value Through Internal Audit: More Than Just Checklists! (Part 1/3)

Adding Value Through Internal Audit: More Than Just Checklists! (Part 1/3)

Let's be honest. When you hear "internal audit," what's the first thing that comes to mind? For many, it might be checklists, rules, or perhaps a necessary hoop to jump through. And while compliance is certainly part of the picture, it's far from the whole story. Internal Audit has evolved, and a truly effective function does much more than just tick boxes – it actively adds significant value to an organisation.

In this three-part series, "Adding value through Internal Audit," I want to explore the positive, proactive ways internal audit contributes to success. We'll look beyond the traditional view and delve into three key areas where internal audit makes a real difference:

1. Helping you navigate and manage risks.

2. Improving how things get done, making your processes smoother and more effective.

3. Offering valuable insights that help you look around the corner and think strategically about the future.

Today, we're focusing on the first point: how internal audit helps you manage risk.

Think of your business like a ship sailing towards a destination (your goals). Along the way, there are potential icebergs, storms, or engine troubles – these are your risks. Risk isn't just about bad things happening; it's anything that could potentially make it harder (or impossible) for you to reach your objectives, whether that's launching a new product, hitting a sales target, or keeping your customers happy.

Internal audit acts a bit like a skilled navigator and mechanic for that ship. We don't just point out problems; we help you understand the waters you're sailing in. We work with different parts of the business to identify where those potential icebergs or storms might be lurking. Are your financial controls strong enough to prevent errors? Is your data secure from cyber threats? Do you have plans if a key supplier suddenly can't deliver?

By helping the business identify and understand these potential challenges, internal audit allows management to put safeguards (controls) in place before things go wrong. It's about being prepared, not scared. This proactive approach protects the company's assets, reputation, and people. More importantly, by helping you navigate risks effectively, internal audit gives leadership greater confidence and a clearer path to achieving strategic goals without being blindsided. It builds resilience into the very fabric of the organisation.

So, while we do check things are working as they should, the real value in risk management is helping the business understand its environment better and build a safer, more reliable journey towards its objectives. It's about smart navigation, not just inspection.

In conclusion, moving beyond the checklist stereotype, one of internal audit's most critical value-adds is empowering the organisation to effectively identify, understand, and manage the risks it faces, thereby protecting value and enabling success.

Next time, we'll explore how internal audit helps streamline operations and make your business processes run like a well-oiled machine. Stay tuned for Part 2!