Fri. Jan 21st, 2022

Faulty Practices Of Internal Auditors In The Corporate Sector

Auditing is one of the most important parts of any business organization. The internal audit teams hold even more importance, as they have the responsibility of saving the organizations. They have to keep their eyes on the progress of the organizations, identify the risk factors, and make important decisions for long term success.

However, the internal auditing teams also have to face the pressure of ignoring crucial matters in the organization. Such practices not only worsen their performance but cause a blow to the organizations in the external auditing process. This is an important reason that established organizations in developed countries like the UAE, outsource their auditing services.

This article aims to highlight some of the faulty practices of the internal auditors in the corporate sectors that can lead the organizations to the brink of bankruptcy.

Top 5 Habits That Make Internal Auditors Highly Ineffective

Internal auditing is an important yet equally challenging responsibility. The internal auditors are aware of all the loopholes of the organizations. They have to ensure that the organization comply with the legal procedures and adopt progressive practices. However, they can also be wrong at times and cause loss to the organization.

The following are some of the most common habits of the internal auditors that can make them highly ineffective for any business organization.

1.    Follow Outdated Practices

The third decade of the twenty-first century has started; however, some of the internal auditors think and work like they are still in the twentieth century. The rules and regulations have changed significantly. Moreover, the advancement of technology has made the use of software quite common.

The internal auditors who do not stay updated with the societal changes, cause loss to their organization, instead of adding to profits. Therefore, most of the business organizations acquire services of top audit firms and ensure smooth and professional management of audit.

2.    Ignore Certifications

Society, in this advanced era, is constantly changing and moving towards betterment. However, some internal auditors do not follow societal trends, which hurts their credibility. This is the era of conferences, seminars, and certifications that are necessary to boost success.

A common faulty practice of the internal auditors is that they ignore the certification. They do not feel the need to update their knowledge and skills. It impacts their performance in the long run, which is not acceptable for progressive organizations. Moreover, having uncertified internal auditors can give rise to a number of other potential issues.

3.    Follow Vague Checklist

The auditing process consists of a number of internal, as well as external rules and regulations. The internal auditors have to follow a vast range of policies and proper manual to fulfill their responsibilities in an effective manner. However, they ignore the process.

This is another faulty habit of the internal auditors that they follow the vague checklists, instead of following a proper framework. They do not care about the regulations and focus their attention only on the end results, which is not a good approach and should be criticized.

4.    Ignore Skill Grooming

Auditing is an important skill, which requires refinement through training and workshops. However, the internal auditors of the business organization adopt the faulty habit of relying only on online coaching. It hinders their ability to learn trendy skills, which impact the performance of the organization.

On the other hand, the internal auditors from the professional organizations focus on polishing their skills through every possible mean. The make use of the latest technology and trends, therefore, provide outstanding outsourced services.

5.    Overlook Integrity

One of the most common, yet dangerous habits of the internal auditors is that they overlook integrity. They are aware of the loopholes of the organizations and responsible authorities. They often end up succumbing to the pressure of the higher authorities, instead of making them change their ideology and practice.

Such a practice can ruin the reputation of the organization. If you think that your internal auditors are also hiding crucial mistakes due to pressure, it is time to outsource the service. You can acquire the help of top audit firms in Dubai and ensure professional auditors do not succumb to any pressure.

Outsource the service to limit your loss!

Internal auditing is crucial for the smooth and hassle-free progress of the organization. However, if your internal auditors are following the faulty practices, there is no other solution than replacing them.

Outsourcing the service is the best possible solution, as the professionals are not only well trained but are aware of the market regulations. You can ensure to get professional policies, the framework to deal with risk, and lead your progress.

So, work on your internal auditing team or replace them with professionals in order to save your organization from perpetuating loss.

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