The contemporary trend is to outsource the internal audit department. However, there are many benefits which we have to consider accruing from having an internal audit department.
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Major advantages Having An Internal Audit Department
- It dispenses the need to employ external consultants to act as internal auditors hence saving large sum of money. This is even especially true when an internal audit department is properly run with well trained and experienced internal auditors;
- The internal auditors are intimately acquainted with the business as they are continuously employed in the same concern and have access to much confidential information and to all levels of management. Hence, they really are “special” personnel who have very in depth inner knowledge which can then contribute to the company;
- The Internal Audit maintains a group of highly skilled people available to cope with non-recurring and exceptional jobs which no many employee could deal with efficiently and effectively;
- It ensures that the organization detailed standard policy and procedures are running smoothly. This compared to the external auditors’ primary role of the ability to express the true and fair view of the clients’ financial statements audit;
- Internal auditors are invaluable in areas like operational audits, constant examination of internal check controls, the detailed application of normal auditing method and detailed review of the various type of management reporting;
- Last but not least, it provides an excellent training ground for future executives. Trainee personnel obtain intimate knowledge of the business which they can study problems of all kinds at different levels
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Refer to MORE ARTICLES on Internal Audits
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