By Joscelyn Brown
May 22, 2017
In this time of constant change and business disruptions, the cost of a breakdown in even one internal control in a high-risk area has the potential to be quite significant. Think about the potential impact of a control not functioning as intended within your loan or finance departments. But how do you monitor your internal controls in both an effective and efficient manner? Your internal audit function is likely the best tool you have for monitoring whether your controls are in place and functioning as intended.
Benefits of Internal Audit
The benefits of a strong internal audit function go well beyond mitigating breakdowns in controls that may have significant financial and operational impacts on your institution:
Options to Fit Your Organization
A strong internal audit department can take one of many forms, depending on your size, shape, and available resources:
The costs resulting from a breakdown in controls have the potential to be higher than the costs of maintaining a strong internal audit department. Developing a strong, risk-based internal audit function will help you to monitor your internal controls and resolve the fear of the unknown.
1Interagency Policy Statement on the Internal Audit Function and Its Outsourcing