YYC - INTERNAL AUDIT SERVICES | KL | MALAYSIA
Businesses and financial examiners learnt that
implementing proper internal auditing practices, risk management & internal
controls are critical to today’s organisations in order to remain
A company must be mindful of the risks inherent in its
business whilst striving to achieve objectives and maintain profitability.
What is An Internal Audit?
“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.
It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes” (Institute of Internal Auditors, 2019).
Why need An Internal Audit?
An Internal Audit is essentially a pre-emptive maneuver to maintain financial reliability and operational efficiency, to safeguard company’s assets.
Key functions of Internal Auditor:
1) Evaluate Risks
- Working together with the management to look at the key risks faced by the business and how to manage the risks effectively.
2) Manage Risks
- Working together with all levels, including assessing the tone and risk management culture of the organization to evaluate and report on the effectiveness of implementation of management policies.
3) Analyze Operating Procedures
- Working together closely with managers/owners to review operations and report findings.
- Provide an in-depth overview of the operating procedures of every department in the company and able to advise on how to optimize them.
4) Provide Assurance
- Work with other providers/parties, especially audit committee to ensure that all available assurance resources are optimized.
Who requires an Internal Audit?
When talking about internal audit, the first thing people think of is a Fortune 500 public corporation having a specific department within the company that periodically perform audits for everything departments do to ensure that the underline operations comply with industry standards government regulation. An internal audit is not something only larger companies need. As this speaks, even small businesses would benefit from internal audit.
As a small business owner, when should you think about having an internal audit performed?
- When you need to come up with a solution to a known problem area.
For example: if you notice your company has a large number of expenses every month, you need to ask yourself, how and where does the company spend its money? Are all expenditures being approved by authorized individuals and recorded accurately? Are the bills being paid on time? Are any employees operating in a dishonest way?
- When you need to verify a critical area that is functioning as it should be.
For example, most companies are inevitably using spreadsheets. What are the controls on those critical spreadsheets in the company? Can anyone access them or change them? Are key formulas in the spreadsheet locked down and password protected?
- When you need to understand how and why an activity happens or operates.
For example: Do you really know if your customers are as satisfied as you think they are? Would they recommend your company to others? Would it be easy for them to switch to your competitor companies? Is it your service or products keeping them satisfied? What can you do to improve their satisfaction with your company?
You may ask, how will Internal Audit benefit my small business?
If any of those questions are exactly what you are thinking right now, an internal audit service would be the most suitable service that we can offer to you, and the reasons are the following:
- You define the scope of the internal audit. In other words, the audit objective is assigned by the business owner. There will be no other procedures performed other than those that are necessary for the audit objectives.
- Internal audit reports go directly to you. No outside agency or adversarial entity will know the audit findings, especially those that may have a negative impact on your business.
- It serves as an early warning system comparing to external, regulatory, or compliance audits. It allows you to identify the deficiencies and rededicate them on a timely basis.
- It provides recommendations to improve the efficiency and effectiveness of procedures.
Internal audit is deemed to be a value-added service and has been able to benefit small businesses that struggle with deficiencies and needed improvements.
Why choose YYC Internal Audit services?
YYC’s internal audit department is dedicated in
providing consulting and advisory services that adds value and improve the
operation of organisations. Objective includes:
- Serves to protect and enhance organisational value by developing
risk-based solutions for our clients.
- Offering best practice
advice across industries
- Helping our clients in
reducing trial-and-error processes and time taken for these and translate it
Internal control (ICR)/ Internal Audit Review (IAR)
- Examine and evaluate company activities to ensure internal controls are in place.
Enterprise Risk Management
- Identify & evaluate enterprise-wide operational risk.
- Provide solution to mitigate business and operation risk.
- Monitor and coordinate risk management process.
Corporate Governance Audit
- Identify gaps between existing corporate governance framework and practices.
- Provide solutions that make reference to the Malaysian Code on Corporate Governance (“MCCG”).
Streamlining/Business Process Improvement
- Creating value through reducing ineffectiveness and duplication of work.
- Optimising profit through a methodological improvement program.
Establishing Key Result Area & Job Description
- Develop a structured approach to consistently review employee’s performance.
- Assist to streamline and realign organisation resources to achieve cost efficiency and improve operational effectiveness.
Drafting Standard Operational Manual
- Document the way an organisation works.
- Build & document a library of processes that an organisation is currently practicing.
Human Resource Management
- Maintenance of personnel records.
- Drafting, annual review and revision of employee handbook.
- Job description process.
- Designing key result areas for employees to measure performances.
- Manpower planning and human resource utilisation.
Head of Internal Audit
Feel free to contact us to find out more.