Internal auditing expands the range of tasks in the direction of control systems, risk management, corporate governance. It is an activity that provides independent and objective assurance and advice, with the objective of adding value and improving the performance of an organization.
In addition to helping the organization achieve its objectives by adopting a systematic and consistent approach to assess and improve the effectiveness of risk management, control, and process management, internal auditing is also understood as an objective analysis of available auditing evidence in order to provide an independent assessment of corporate governance, risk management, and control processes in the organization.
Internal auditing services are understood as activities to provide advice and recommendations to the client, whose nature and content are agreed with the client, aimed at assisting and improving corporate governance, management and risk control processes, excluding the assumption of responsibility by internal auditors for management decisions.
Internal auditing carries out its activities aimed at the interest of internal users of the information, such as executive board, board, owner. Regarding the objectives of your function, they may vary depending on the size, structure of the organization, and management requirements, generally involving: 1) Compliance review. 2) Review of operational activities. 3) Risk management. 4) Monitoring of the internal control system. 5) Corporate governance. 6) Study of financial and operational information.
The opportunity to create an internal auditing service is due to factors such as the stage of the company's life cycle, its scale, the degree of formalization of the processes, the role of the owner in management. In the early stages of a company's life cycle, as a rule, owners are directly involved in the management process, processes are not formalized, their control is situational, and complete management and control systems have not been developed.
Under these conditions, the subject area of internal auditing ends up being very restricted, but as the company develops and diversifies, its scale grows, the size and complexity of management tasks increase, the range of risks expands, regular processes are formalized, decentralized and formalized management, controls and risk management are built. Risk assessment and operational efficiency, monitoring of control systems, etc. are becoming relevant. Under these circumstances, internal auditing becomes a very useful management tool.
With a properly organized internal auditing service, the company receives tangible benefits, having a permanent division focused on evaluating and improving its performance, that is, doing so not from time to time, but continuously, systematically and consistently. This continuous work allows auditors to deepen their characteristics, the specificities of their activities and management, to carry out more accurate and detailed assessments, to give more valuable recommendations, and to monitor the progress of their implementation, since auditing covers thematic areas of extreme importance from the point of view of meeting the company's objectives.
Internal audit data have a higher degree of reliability and can be used by executive management in managing the organization. The presence of a good internal auditing service can be a great sign for investors, creditors, or potential clients.
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax services, corporate finance, Financial Advisory, Risk Advisory, technology, business consulting and training. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
