Internal Audit Mission and Approach

Internal Audit has gone through many changes in the last decade, both in the mission of internal audit and the approach to achieving its mission. The old concept of internal audit counting inventory or petty cash, or test checking expense reports for adherence to travel policies is now a relic of the past. The focus now is for internal audit to evaluate the systems of internal control, with a focus on procedural elements, and recommend improvements. In addition, the modern internal audit function addresses the goals of the shareholder with respect to operational inefficiencies, weak lending practices, excessive risk in the marketplace and other critical elements of the business.

The approach to achieve its mission has changed also. In addition to reviewing the critical systems and processes, the modern internal auditor uses software tools to extract and examine data that would be difficult to do in the past. The auditor uses these software tools to identify errors, anomalies, patterns and exceptions as they occur. Rather than using statistical sampling to select transactions for review, the software considers every transaction and extracts only those that warrant additional review by the internal auditor. This “continuous auditing software” can extend the capabilities of the Internal Audit Department while keeping the department headcount to a minimum.

Clearview knows every facet of an Internal Audit Department and can help your Company significantly improve the value of this function to your organization with a clear alignment with the goals of management and shareholders.