In recent years, with the economic conflict between Chinese enterprises and the rapid development of global economic globalization, internal audit has gradually become an important part of enterprises risk management and decision-making process.Therefore, the necessity and importance of internal audit are more and more emphasized. This paper will discuss the necessity and importance of internal audit from four aspects.
First of all, strengthening internal audit can internalize commitment mechanisms. As external supervision increases, the reliance on internal systems and processes increases. Internal audit is the most effective way to ensure that the companys operational commitments are implemented correctly and to the right standards. The internal audit staff will test and inspect the relevant procedures, evaluate the effectiveness and compliance of the operational process, and set the norms for the operation process in the organization.
Secondly, internal audit can form a bridge for communication between different departments of the same company. Internal audit staff will check the entire system and continuously assess the effectiveness of each department from different aspects, and conduct checks and ask questions to various departments staff in order to get to the bottom of the problem.
Thirdly, internal audit plays a vital role in preventing fraud and theft. The internal audit staff can go deep into the company to deeply observe the system of the entire company, from the management level to the operational level, and from the financial level to the human and material resources. With such an internal control system, employees can be more and more conscious of implicit control. Compared with the external external audit, internal audit companies can better play the role of insurance, prevent mistakes and omissions, and rarely caused by fraud and embezzlement, thus ensuring the sound development of the company and effectively avoiding risks.
Finally, internal audit can help improve efficiency. Internal auditors are more familiar with the internal situation. Through the internal audit process, they can enhance the overall process efficiency and operation, and identify potential bottlenecks and potential risks that may affect the progress and quality of the project. This can help the company timely adopt measures to solve the problems, improve the efficiency of the entire process, and achieve better performance.
In conclusion, internal audits are an important tool for businesses to better manage and mitigate risks. Strengthening internal audit can promote economic and social benefits, including helping to make sure the company is compliant, bridging communication between departments, preventing fraud and theft, and improving operational efficiency. Therefore, it is necessary and important for companies to strengthen internal audits.
