My search feed generates a fair number of audit-related items. One stood out as both useful and interesting in its description of internal audit.
Sarah Harvey, a contributor to the Kirkpatrick Price blog, penned “5 Reasons Why Internal Audit is Important” where she first provides an overview and then succinctly captures the essence of internal audit in five essential elements.
Internal audit is conducted objectively and designed to improve and mature an organization's business practices. Internal auditing provides insight into an organization's culture, policies, procedures and aids board and management oversight.
Sarah Harvey
Five Reasons Why
Morris provides five reasons, fleshing out each reason with a few comments. I’ve seen more verbose explanations of internal audit that don't get to the heart of the matter as well.
- Provides objective insight
- Improves efficiency of operations
- Evaluates risks and protects assets
- Assess controls
- Ensures compliance with laws and regulations
It’s important to remember that not every internal audit encompass all these elements equally. Audit objectives are tailored to the engagement and needs of the customer.
What would be an easy to remember elevator speech for internal audit? I recently posed that question to the Regents Fiscal Affairs and Audit Committee. That’s our topic for next time.