“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.”

Why should an organization have an internal audit function?

• A cornerstone of strong governance, internal auditing bridges the gap between management and the board, assesses the ethical climate and the effectiveness and efficiency of operations and serves as an organization’s safety net for compliance with rules, regulations and overall best business practices.
• Management is responsible for establishing and maintaining a system of internal controls within an organization. Internal controls are those structures, activities, processes and systems that help management effectively mitigate the risks to an organization's achievement of objectives. Management is charged with this responsibility on behalf of the organization's stakeholders and is held accountable for this responsibility by an oversight body (e.g., board of directors, audit committee or elected representatives).
• A dedicated, independent and effective internal audit activity assists both management and the oversight body in fulfilling their responsibilities by bringing a systematic, disciplined approach to assessing the effectiveness of the design and execution of the system of internal controls and risk management processes. The objective assessment of internal controls and risk management processes by the internal audit activity provides management, the oversight body and external stakeholders with independent assurance that the organization's risks have appropriately been mitigated. Because internal auditors are experts in understanding organizational risks and internal controls available to mitigate these risks, they assist management in understanding these topics and provide recommendations for improvements.
• Organizations that do not have an internal audit function are therefore missing the valuable benefits that professional internal auditors provide. In addition, they are running the risk of relying on management who may not be in the best position to provide skilled, independent, and objective opinions on internal controls.

We at BM Global Services have been providing the internal audit services for last 4 decades to our wide range of clients with highest professional standards.