Implement a robust internal audit strategy in your business with internal audit firms in India

To benefit the company, internal audit firms in India keep abreast and create a strategy for the development of internal audits for several years to come. Globalization and periodic global crises, the rapid development of technology, and unexpected changes in the stock markets – such factors are considered by internal audit companies in India when conducting a long-term analysis of the impact of risks on the company. 

How to develop an internal audit service strategy?

The tasks of the internal audit function are becoming more complex all the time. Initially, internal auditors were considered controllers of the accounting department, who monitor the reliability of financial statements in the interests of owners and investors.

However, today the sphere of influence of the internal audit covers the monitoring of all areas of the organization’s activities and includes forecasting and risk management.

The following factors significantly influenced this rethinking of the role of internal audit:

• Frequent restructuring and mergers of enterprises;
• The decrease in the importance of geographical boundaries in the movement of goods due to globalization;
• The digitalization of society and work processes, the boom of which was provoked by the pandemic;
• Increase in cases of cyber fraud.

The complication of internal audit functions leads to an increase in the importance of internal audit services for the activities of companies.

Employees of the internal audit department must understand how they help solve the global problems of the enterprise. And for this, it is necessary to develop a strategy for the work of the department for several years ahead.

Let’s list what to look for during the strategic planning of the work of the internal audit service.

1. The developed strategy determines what place the internal audit service will take in a few years in the structure of the enterprise. Therefore, first of all, it is necessary to establish the goal of the department’s activities, related to the strategic goals of the company’s development.
2. Any goal is better than its absence, but it is desirable to think over the wording of the goal and prescribe ways to achieve it. The SMART system will help with this.

Examples of SMART goals:

• Increase sales of product A to foreign companies by 10% by the end of the second quarter of the current year;
• Increase the familiarity of the young audience (16-22 years old) with product B by 50% in two years;
• Bring the brand to the TOP-3 in its field according to user recognition in 5 years.

3. In the long term, external factors can dramatically change the situation, and therefore it makes sense to develop several options for the strategy. And to prescribe those significant factors, with the occurrence of which it is possible to change the strategy of the department.

4. Discussion of the planned strategy with the management of the enterprise. The head of the internal audit service conveys the value of the department’s strategy and its importance for the development of the company.

If management categorically disagrees with the presented plan, a few additional options will also come in handy. From them, you can choose or compose a plan that will satisfy all interested parties. As a business owner, you may find it difficult to carry out this work without someone who has the required knowledge and expertise in this sector, and for this reason, we recommend that you should consult internal audit companies in India and save your time and efforts for the core activities of your business.