Category: Insights

An effective internal audit not only presents a clear, accurate and in-depth picture of your organization. It gives new insights and findings that can add value to your performance. Internal audit presents a comprehensive view of your organization and give valuable guidance on its strengths, weaknesses. Furthermore, report highlights communication gaps, risks and
potential opportunities to explore. However, the challenge comes on the auditors to analyze the previous progress of an organization. Moreover, to constantly present new effective strategies to management. Here are the few things in which internal audit can add value:

● Identify competitive strengths:

Internal audit can help analyze the competitive advantage that you have over your competitors. Internal audit is a driving force towards improving your organizations performance by highlighting your key strength and unique skills. Based on the suggestions, management builds a strategy and gain competitive advantage over others.

● Adopt a risk based methodology:

The benefit of conducting an internal audit is that it views all areas of your business, analyzes how each process is interlinked to all other departments of an organization. It is significant for auditors to analyze and give in-depth analysis on the risks that your organization is facing. Also, go beyond this and predict emerging risks and how to protect your organization from it. Provide a complete outlook on the threats and weaknesses in the high risk areas. Internal audit helps in tackling
this damage by taking timely actions and rectifying the mistakes in the system.

● Tracking core business metrics

It is very important to keep a track of the metrics which are efficiency, profitability, threats and compliance. It can help management view the effective auditors who are making contributions to their organization. Management can view performance, latest trends and most importantly see how efficiently auditors are bringing a positive change in their business.

● Collaborate with stakeholders

Communicating with key stakeholders regularly is important to get an idea of what they are expecting, what are their goals and objectives and what are the risks they consider. Before conducting an audit, it is essential to collaborate with stakeholders to get input on important aspects, things to monitor, correct approach, risk assessment and scope. Moreover, with the help of stakeholders, the audit process becomes much more streamlined and it creates a meaningful impact in the organization. Certainly, internal audit brings a positive influence to the organization. Also, it uncovers
hidden issues in an organization that needs to be fixed. Lastly. opting for internal audit adds great value to your company.

Pandemic has impacted globally at unprecedented levels. It has exposed how businesses were hit by one of the greatest global crises of all time. Moreover, even the financial system of established businesses had a major impact by the coronavirus waves, finding it hard to make their business survive in these tough times. Indeed, it came as a shocker for everyone working in different industries.

Pandemic brought out the true reality of financial systems. Financial systems require more scrutiny and effective strategies to prepare businesses for any future downturn. So, here are a few points that businesses need to prioritize in repositioning their financial systems:

● Digital led recovery for small business:

Digital transformation should accelerate by the small businesses as it has now become the need of the hour. Small businesses are the backbone of the economy as they are creating more jobs, leading innovation, and reflecting diversity. However, there is a large gap in the finances of large businesses and small businesses which is why small businesses face difficulty in recovering their finances.

Financial institutions prepare effective strategies to help small businesses adopt digital models for their businesses. Helping businesses to minimize fraud, connecting them to digital marketplaces are now critically important just as payments. Furthermore, the government also has a significant role to play in uplifting small businesses by implementing an effective policy.

● Performing Automated reconciliation and analysis:

Finance professionals have discovered that some reconciliation and analysis should not be conducted manually. Deploying an automation solution makes the reconciliation easier and quick. Integrate financial automation tools into the core of the financial system. Also, this gives confidence to the financial teams that all the financial information and numbers are accurate.

● Supporting data security and privacy requirements:

The inclusion of advanced financial analytical tools strengthens your internal financial system, giving confidence to the financial team to give more valuable insights. However, the downside of these automation tools is the risk of security and privacy of sensitive data. Certainly, financial teams should constantly focus on data security and privacy requirements. Lastly, deploy a cybersecurity system to protect their organization from data breaches and keep a close check on such risks.