I am writing to address on how
the newly created internal audit function may be beneficial for the board of
directors for Triangle Plc. In previous years Triangle plc did not have an
internal audit function and the risk management and internal control process
were led by the CEO which had may been the reason for poor risk management on
the food risks this may be because of the director’s lack of value towards the
business. Internal audit is independent and is designed to add value and
improve an organisations operation that brings many advantageous aspects to the
table for the business by either giving assurance or giving consultancy advice
based on in both cases agreed upon procedures.
The first benefit is that the
internal audit is reported directly to the board of directors or management.
This can be beneficial for the directors as they will be informed of the doings
of the business and able to make any changes before the public and other
businesses in the industry get any information. It gives advice on how to
advance the efficiency and effectiveness of the doings. This would come in use
for the finance team as they would know how they are able to increase their fall
in profit over the past years and increase their flat revenue.
By having an internal audit in
Triangle plc there would be more testing and assessments taken place within the
business regularly, there are various assessments for the different aspects this
is so that the business can get a feedback based on everything. Some types of
these are control assessment which identifies the weakness against the best
practised and suggest room for improvement. It is used to improve
the effectiveness of risk management, governance processes which helps benefit
all stakeholders. Such as the date tampering risk that could affect Triangle
plc reputation with stakeholders the internal auditor would be able to offer
advice on how to improve the management of Triangle Plc. Reporting is
also taken place this is providing observations and recommendations to improve
processes and controls this could be the food safety and hygiene of the company
or the way in which staff and managers work. Internal audit helps the executive
management of Triangle plc as they act for the better of their stakeholders as
they help the executive management and boards display that they are managing
the company well. An implication of this is that internal auditors play a close
role and would challenge executives in the day to day management of Triangle plc
as the audit committee is also made up of independent non-executive directors.
In conclusion I think that an
internal audit function would impact Triangle plc heavily as they bring more
precise control and management into the business. Not only that it is also said
that most large organisations should have an internal audit function for survival
and prosperity of any organisation.