In today's rapidly evolving business landscape, the internal audit function can no longer be viewed as a mere compliance mechanism. With increasing cyberthreats, shifting regulatory landscapes, and growing demands for efficiency and transparency, internal audit needs to be a strategic differentiator for businesses. Indeed, a robust internal audit function can address critical business challenges.
Are you looking to cut costs, enhance automation, incorporate artificial intelligence and streamline processes?
Cost-cutting and operational efficiency are top priorities for businesses that want to thrive in competitive markets. Internal audit can be pivotal in:
- Identifying redundancies and processes that don’t add value so they can be eliminated or automated
- Recommending automation opportunities for routine tasks, which not only reduces operational costs but also enhances accuracy
- Introducing AI as a tool to increase operational efficiency or generate insights to drive process optimizations
- Implementing streamlined internal controls, allowing for smoother business operations
By offering clear insights into the risks and opportunities of such transactions, internal audit enables your company to make more informed and strategic decisions.
Are you contemplating an acquisition, merger or spin-off?
Mergers, acquisitions and spin-offs are complex processes that demand rigorous due diligence and risk management. Internal audit serves as a key player by:
- Conducting pre-transaction due diligence, identifying risks related to financial performance, legal compliance and IT infrastructure
- Ensuring alignment of internal controls post-merger to integrate the operations and cultures of merging entities
- Evaluating the financial health of acquisition targets to ensure they align with strategic goals
By offering clear insights into the risks and opportunities of such transactions, internal audit enables your company to make more informed and strategic decisions.
Is your company prepared to respond to a CrowdStrike-like event?
Cybersecurity threats are no longer a distant concern. An unexpected and large-scale cybersecurity incident—like the outage caused by a faulty CrowdStrike update in July 2024—can cripple businesses and damage reputations. Internal audit is uniquely positioned to play a critical role in assessing and testing your company’s preparedness for such events. It does so by:
- Evaluating cybersecurity frameworks to ensure robust incident response plans are in place
- Testing IT controls regularly to identify potential vulnerabilities
- Collaborating with IT teams to assess the effectiveness of cybersecurity hygiene protocols across departments
By proactively identifying potential weaknesses, internal audit enables your company to respond swiftly and efficiently to cyberthreats, minimizing both operational and reputational damage.
Would you like better visibility into your IT and business control environment?
Gaining comprehensive oversight over IT and the business control environments is crucial for maintaining operational integrity. Internal audit provides:
- Comprehensive assessments of IT control frameworks to ensure they are aligned with business objectives
- Risk-based audits that identify gaps and offer recommendations for strengthening controls
- Cross-departmental assessments that unify control measures across IT and business functions for improved efficiency
Through better visibility, internal audit enhances decision making and supports ongoing business improvement initiatives.
Are you planning an initial public offering?
The journey to becoming a publicly traded company requires unparalleled transparency and robust governance structures. Internal audit supports IPO readiness by:
- Ensuring Sarbanes-Oxley Act compliance, critical for companies going public
- Testing internal financial controls to meet the regulatory requirements of public companies
- Preparing for investor scrutiny, strengthening financial statements and business processes to reflect the highest standards of governance
Internal audit not only enhances compliance processes but positions your company as a well-governed, attractive entity for investors.
Do you desire tighter alignment with your strategic priorities?
A company's internal audit function should be aligned with its strategic objectives. By performing risk assessments that consider both the internal and external business environments, internal audit helps:
- Ensure operational goals are aligned with strategic priorities
- Track performance against benchmarks, helping leadership teams make data-driven decisions
- Adjust controls and risk management strategies as the business grows or pivots
Internal audit can ensure the entire organization moves in a unified direction, fully aligned with the company’s long-term vision.
Do you want to prevent fraud?
Fraud prevention is critical in protecting company assets and maintaining stakeholder trust. Internal audit strengthens anti-fraud measures by:
- Assessing internal controls to ensure they are designed to prevent and detect fraudulent activities
- Monitoring high-risk areas such as vendor payments, payroll and financial reporting for anomalies
- Implementing continuous monitoring systems, ensuring real-time oversight over suspicious activities
By focusing on high-risk areas and improving fraud prevention measures, internal audit plays a vital role in safeguarding your company's resources.
The takeaway
In today's challenging business environment, internal audit is no longer a back-office function or cost center, but a strategic differentiator. Whether it's responding to cyberthreats, streamlining processes, adopting automation, preparing for an IPO or aligning operations with strategic priorities, a robust internal audit function drives efficiency, resilience and growth. As companies strive to navigate a complex and rapidly evolving marketplace, leveraging a high-performing internal audit function is essential to maintaining a competitive edge.
Related insights
Risk assessments
A risk management assessment can help determine how your organization can leverage internal audits as a competitive advantage.
