Is your CEO liberal with the truth? It may be time for Internal Audit

Is your leader conveniently forgetful, prone to omitting critical information or in AFL football parlance susceptible to 'putting some extra mayo' on the facts? A leader or CEO that is liberal with the truth can damage trust, create division and erode the culture of a business, but there is one way to protect against this. An independent and objective internal audit program provides a level of protection that other activities can’t.

Internal audits are not just for large multinationals. An internal audit can be built to suit the size and needs of any business, providing valuable insights that drive performance, improve risk management, and enhance operational efficiency. Here’s how:

Accountability and Transparency

Typically, an internal audit is structured to report to a business owner, or director and is not accountable to the CEO or other leader. This separation from the business enables it to communicate a view without fear of reprisal or penalty. This structure ensures that internal audit can provide unbiased and impartial evaluations of management’s activities.

Improving Processes and Efficiency

Internal audits help you identify gaps and inefficiencies in your processes. Whether it is optimising workflows, ensuring compliance with industry standards, or safeguarding assets, an audit can help you find ways to improve efficiency and reduce costs.

Proactive Risk Management

Every business faces risks and internal audits help identify these risks early, allowing your business to implement preventive measures rather than reacting after an issue arises. A limited internal audit can help you evaluate and strengthen your internal controls, ensuring that key tasks are executed accurately and consistently.

Internal Audits provide critical information in relation to how well a business is being managed. Even the most ethical leaders can struggle with effective communication about business performance which is why an independent and objective view isn’t just a luxury, but a necessity for any business.

Talk with us today to learn about how Virtus Advisory can help you get started.