You have recognized that there is a lack of financial control, but you do not understand what the problem is. The company appears to be spending more than it should, but you can’t make out what. The solution could be an audit. By reviewing all business processes, the Internal Auditors will identify the issues and offer alternative solutions.
This article provides a guide to what to consider when hiring this professional.
Why hire an internal auditor?
Company routine can make identification difficult administrative error Because you’re in the scene, you’re part of the problem. Often only an outside look can spot management flaws, no matter how obvious they may be.
That’s exactly what an internal auditor does: delve in the whole financial scenario of the company, including documents such as accounting records, cash flow reports and control policies.
Auditing is a common practice in public companies, but it can also be useful in small companies, especially if the Entrepreneur is newbie. The main functions of an audit are:
- Analyze the role of accounting, financial and operational controls.
- Measure how well prescribed procedures are being followed.
- Check the degree of reliability of the company’s information and accounting data
- Evaluate the quality of task execution
- Calculate the company’s strategic risks
Tips for hiring an internal auditor
1. Study the market
Find the best cost/quality ratio for your business. Ask about budgets, study the proposals, understand what each one offers and examine their experiences. If you don’t, you can spend money for nothing.
2. Analyze references
Have you found the best alternative? Now you need to evaluate the references of this professional. You need to know their training and talk to them old customers to find out if they recommend it.
3. Watch your sphere of action
Give preference to accountants who have worked with companies in the industry before Size of your company and your industry. An accountant specializing in another sector may take longer and be less effective.
4. Ensure confidentiality
It is essential that the auditor undertakes to treat your company’s information as strictly confidential. This duty must be specified in the contract and it’s protected by law, but it’s still worth speaking to the professional to see if you trust them.
Finally, remember that an internal audit must be an education because it allows you to do this learn techniques to improve everyday work. The more information you get from the auditors, the closer your business will be to efficiency.