A semi-annual or annual internal audit allows you to gauge the effectiveness of your business’s internal control system. Unlike an external audit, which focuses on determining whether financial statements conform to generally accepted accounting principles, an internal audit focuses on uncovering internal control weaknesses and evidence of fraud, waste or abuse at your company. Internal audit procedures and techniques are essential to effective risk-management implementation
An internal audit helps you access and improve internal business controls at your company by reviewing risk-management plans and business processes for weaknesses and failures. Audit procedures typically start by assessing current processes and procedures. Auditors then analyze and compare results against internal control objectives to determine whether audit results comply with internal policies and procedures as well as federal and state rules and regulations. As a final step, auditors compile an audit report to present to the business owner.