Internal Audit Services in the United Kingdom
3E Accounting delivers a quick read on why good governance requires internal audit services in the UK.
To ensure that your business is performing at optimal levels, it is necessary to perform an internal audit. These are done independently and assess a company’s governance and risk management activities. Internal audits also provide assurances on a company’s internal control processes. They identify gaps and provide solutions at crucial junctures. Reliable internal audit services in the UK, such as those offered by 3E Accounting, are a critical part of any successful business. They send a strong message to shareholders that management is doing its job and doing it well.
A Good Look at the Works
Internal auditors are independent assessors who will provide a constructive and objective assessment of internal controls. These assessments will require a complex mix of strategies, investigation, and solutions. Both resources and solutions need to be scalable to handle the multitude of risks that organisations face these days. Issues need to be identified and analysed, and appropriate solutions and controls need to be implemented.
Firms that offer these services usually provide auditors with an exceedingly high level of skill, knowledge, and experience. Competent internal auditors will be able to leverage global industry and market insights while providing novel solutions. They work seamlessly with management, offering bespoke frameworks and programmes.
Internal audits differ from external audits in several key areas. External audits are localised, looking at financial risks and statements, while internal audits are more all-encompassing. All aspects of an organisation can be audited, such as environmental impacts and employee wellbeing. The line of reporting also differs as external auditors report to those outside the structure of governance, such as shareholders. Internal auditors report to senior management and the board, i.e., within a company’s governance structure.
The most fundamental difference lies in their objectives as external audits provide reliability and credibility to financial statements and reports. To really take a close and objective look at how your company is performing, you will need an internal audit. A professionally done internal audit will analyse an organisation’s risk management culture and provide proactive solutions. All internal processes and systems will be evaluated, and improvements implemented. Overall, the effectiveness of a company’s governance is assessed and improve upon.
An internal audit will encompass several activities, such as:
- Evaluating all internal controls and processes.
- Evaluating risk mechanisms and controls.
- Reviewing operations, strategic objectives and management policies.
- Advising management on risk culture and policies as well as mitigation.
- Quality assurance, effective knowledge transfer and full support solutions.
Quite a few alterations are in the air with post-Brexit regulations as well as the advent of the UK Sarbanes-Oxley Act (UK SOX). Internal audits are taking front and centre stage with these changes looming. If you are looking for internal audit services in the UK, it is best to go with a firm that offers professional assurance and adds value. 3E Accounting will evaluate, assure, and provide innovative solutions to ensure best practices. We offer customisable solutions that can help your organisation to stay on track and ahead of the competition. Contact 3E Accounting to work with professionals that innovate and add value to everything we do.