Internal Audit
An effective means aimed at assisting management in verifying the implementation of administrative policies that ensure protection and guarantee the accuracy of the data contained in accounting books and records, in order to achieve the highest level of operational efficiency. Internal auditing is considered one of the most important tools and methods used by management to verify the effectiveness of internal control. It is a tool that serves the organization as a whole, not just its performance, and it also focuses on measuring and evaluating accounting and financial processes, as well as assessing the effectiveness of the internal control system.
What the service covers
- Establishing the internal audit function from scratch: the charter, structure, reporting lines and authority.
- A risk-based audit plan — annual and multi-year — built for your entity, not copied.
- Performing internal audit engagements, fully or partially outsourced.
- Assessing the adequacy and effectiveness of internal control over the significant cycles.
- Evaluating an existing internal audit function and identifying gaps against professional practice.
- Supporting the audit committee with periodic reports that can be acted on.
How it differs from the external audit
The external audit expresses an opinion on the fair presentation of the financial statements for their users, and happens at year end. Internal audit works inside the entity and throughout the year, assessing the adequacy and effectiveness of controls, risk management and compliance — and reports to the board or audit committee, not to outside parties.
Neither substitutes for the other. An effective internal audit function reduces the scope and cost of the external work, and reduces the likelihood of surprises at year end.
Reporting lines — where most implementations fail
An internal audit function that reports to executive management while auditing its work is not independent. Independence here is not an organisational nicety but a condition for the validity of the conclusion: the functional reporting line runs to the board or the audit committee, and the administrative line must not hollow that out.
How we build the plan
- Defining the audit universe — every auditable unit and process in the entity.
- Assessing risk for each: impact, likelihood, and the strength of existing controls.
- Prioritising and distributing engagements across a declared cycle.
- Performing the engagement: understanding the process, testing controls, documenting evidence.
- Reporting findings ranked by severity, each with a root cause, a recommendation, an owner and a date.
- Follow-up — what separates an effective internal audit function from a nominal one: verifying that prior recommendations were implemented before opening new work.
What you receive
- An approved internal audit charter.
- A risk register and the audit plan built on it.
- Engagement reports with findings and actionable recommendations.
- A periodic follow-up report on the status of recommendations.
Related detailed guides
- Embezzlement and financial fraud reports — and the controls that prevent them
- Types of auditor opinion
- Audit committees and internal audit in unlisted companies
- Conflicts of interest and related-party transactions under the new Companies Law
- Assessing the internal audit function: how to know whether yours actually works
Frequently asked questions
We are a small business — do we need internal audit?
The need is driven by concentration of authority, not size. An entity where one person records, approves and executes needs compensating controls, even with a limited audit scope.
Do you perform engagements or only establish the function?
Both. Some clients need the function established and then run internally; others prefer full outsourcing.
Can you be both our external and internal auditor?
No — that would conflict with the external auditor’s independence.