When it comes to reviewing a company’s financial status, every organization needs a good external auditor. Auditors look through in-depth accounting information in order to ensure that the reporting is a true representation of an organization’s financial position.
Auditors also assess things such as risk in order to help guide organizations to a healthier and more prosperous financial future.
Internal audits happen frequently within an organization. Companies utilize their own hired talent to review the work of others or the overall validity of the company’s financial reporting. As the Association of Certified Fraud Examiners explains it, “The internal audit function 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.
The scope of internal auditing is broad and may involve the efficiency of operations, IT controls, the reliability of financial reporting, deterring and detecting fraud, and compliance with laws and regulations.”