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Why Is Internal Audit Important And How To Manage Them?

December 30, 2020

Not so long ago businesses used to manage all their compliance on paper, internal audits was more of a manual process in most businesses. But now things have changed, and more and more companies have embraced technology. This is true for most legal and finance departments as well. Internal audits have become a mandatory requirement more than an essential process. Staying away from technology does more harm than good, and even compliance professionals and auditors have understood the need to have management software in place. 

Why are Internal Audits important?

An internal audit is conducted objectively and is designed to protect the business. It plays pivotal roles in improving and optimizing the organization business practices.

Internal auditing is critical for stakeholders, board members and its directors to quickly analyze and get an overview of an organization’s health against policies, companies procedures, internal controls, operating efficiency and compliance related to laws and regulations.

Why Adopt Internal Audit?

Good Corporate Governance

Corporate governance is viewed as an oversight of the organization procedure, policies and practices. Having good corporate governance means to have a good system to control and monitor all these procedures, policies and practices such that the business is operated in the best interest of the corporation and its shareholders.

Enhanced Productivity

Regular Internal audits gives you a pattern to spot the issues and to optimize your process leading to increased productivity at the team as well as at an organizational level.

Increase stakeholder confidence

While having stakeholders, the question of how to bolster the confidence of the stakeholders in our procedure, policies and practices is never far away. Many companies are reluctant in disclosing the information to the stakeholders fearing they don’t have all the information in case stakeholders come back asking for more. Regular auditing and a good tool will help companies overcome these fears as all the documents/processes are tracked and are in the central repository. All the documents and reports are just a click away.

Fraud Detection and Quality Assurance

Regularly performing Internal audits helps the organization understand the areas which need to be set right and discover areas that are unproductive. Using a platform/software for this purpose also means you can uncover these areas regularly and with less stress.

Having a compliance management system/platform gives the organization enormous benefits while auditing, here are few of them.

  • Map,track, perform, collect and analyze risks to establish audit universe, audit reports, progress reports, user reports and more.
  • Planning, including audit planning and scheduling, and tracking of progress and status
  • Ability to share documents and to give access to only required users. This makes communication and sharing information that much easier and secure.
  • Audit overview from the top management level to the lowest level.
  • Managing/Tracking Company’s Policy
  • Create and manage online or offline audit work papers with strong workflow capabilities 
  • Helps in understanding the legal aspect of developing a product quicker. This reduces two and fro and helps in taking the product to market in weeks and not months.
  • Acts as a central repository which in turn reduces efforts to pull data from multiple sources as and when required for ad hoc analysis.

Today, compliance software is available to companies of all sizes without limiting benefits. Are you planning to have a better compliance/audit process in your company? Visit our site to know more of our service: https://quantlegaltech.com/. You can even write to us sales@quantlegaltech.com