How do internal audits value add and reduce compliance cost?
In a typical internal audit, the auditor provides an independent, objective assurance and consulting activity to improve an organization’s operations by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
In a value-adding internal audit, the auditor evaluates current technologies and emerging regulations to further improve operating efficiency as well as identifies opportunities to enhance control process. The auditor would also recommend your company cost-effective and forward-looking controls by incorporating the latest technologies to streamline control activities and complying with new regulations. Value-added internal audit should include recommendations that further enhance risk identification and risk mitigation processes.
As a result, value-added internal audit can help companies stay ahead of regulatory changes by preparing in advance instead of implementing new or additional control measures as they take effect. This allows for better planning and resource allocation, reducing operational constraints and limiting the increase in compliance costs, allowing for more resources to be devoted to other business activities.