An internal audit is an important administrative tool, focused on examining the conduct of the various departments within an organization. It plays a vital role in providing the management with ways and means for improving operational performance and effectiveness, thereby using available resources in the most efficient and equitable manner.
Over the past years, internal audits have become a very significant component of any organization's proper activities, and it is clear now that there is no manager who does not comprehend the importance of an effective and innovative internal audit, even if such function is binding upon the organization by virtue of the law or regulations.
When conducting an internal audit, the following questions must be addressed to elicit more complete responses:
- Are the objectives, goals and policies as defined by management (or by a third party on behalf of the organization) effectively attained?
- Are activities performed in accordance with the principles of good administration and management, whilst observing the provisions of the law and the relative normative framework?
- Is the use of resources (money, assets, human capital) cost-effective and efficient?
- Are the activities defined in the appropriate procedures actually implemented as specified and in conformity the rules and other provisions by which officeholders are bound?
- Are the exposures to risks in the operations identified and managed in an educated manner, so as to minimize the potential damage?
Our experience shows that a professional and in-depth examination of the audited departments' activity by an objective and autonomous internal auditor, highlights the need for management to induce new patterns of thinking and performance visi-a-vis corporate policy and implementing decisions, whilst indicating what needs to be done from now and henceforth.
The Risk Advisory Service (RAS) team at BDO Israel Consulting is one of the leaders in Israel in providing internal audit services, with over 30 years of experience in rendering a professional and quality service to diverse clients in different market sectors.
The internal audit services are rendered in a number of configurations:
- Appointment of internal auditors in the organization
- Internal audit outsourcing to the chief internal auditor
- Performance of a preliminary review to determine internal audit targets for the chief internal auditor
- Provision of various audit/examination services ad hoc for the organization's management/board of directors
The internal audit team has unique expertise in providing audit services to the following sectors:
- Public companies
- Settlement sector
- Third sector/non profit organizations
- Institutes for higher education