INTERNAL AUDITS FOR HOTELS

WHAT IS AN INTERNAL AUDIT?

The Institute of Internal Auditors defines internal auditing as “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.”

In sum, an internal audit is designed to monitor the extent or level of

effectiveness of internal controls set by management. These so-called
internal controls (aka “management controls”) include the following:

• Organizational plan or all those processes

designed to organize, direct and control operations
• Methods, procedures and systems that measure,
report and monitor performance
• Measures adopted by the management to
bring reliability, accountability and traceability for every action,
forming part of the organizations processes

Additionally, internal controls are a company’s first line of defensa against

fraud, non-compliance to laws and regulations, and violations of provisions
embodied in contracts and agreements.
WHAT HAPPENS DURING AN INTERNAL AUDIT?

An internal auditor primarily focuses on reviewing and analyzing

documents or paperwork concerning a company’s risks, goals and
performance. They also observe the implementation of specific strategies
designed to achieve company objectives.

During the audit, the designated professionals make their objective

observations and take notes. They also interview employees with the aim of
understanding the following:

• How they perform in their functional área

• What controls are being followed

An internal audit also includes a meeting with the director or board

responsible for hiring the auditors. During this consultation, the auditors
can discuss their findings and suggestions for improvement, and how these
can best be implemented in the company.

Depending on the size of the company or department under review and

the scope of the audit, the process may take a few weeks or months to
finish depending on the audit plan.
BENEFITS OF INTERNAL AUDITING

In general, internal audits provide companies opportunities to improve and

grow; that is, if areas of improvement are targeted and addressed.

The internal auditing process also offers many specific benefits, including
the following six:

1. Strengthens Internal Controls

Since internal audits are focused on what internal controls are in place, such
as your enterprise control environment, they give companies the
opportunity to ensure these are well-designed, effective and efficient.

An internal audit lets business owners know if established management

controls are working as they should and working to achieve their objectives.

2. Enhances Efficiency

Is there a better way of doing things?

This is just one of the questions an internal audit answers when it comes to
efficiency concerns. With an internal audit, it becomes easier to identify
redundant business practices and procedures, and come up with
recommendations to improve or streamline processes. This, in turn,
can save businesses both time and money.

3. Improves IT Security
During an internal audit, your cybersecurity environment is subjected
toclose scrutiny.

An IT audit, for example, includes creating an inventory of all your

company’s digital devices and checking how these are secured in line with
your policies. Auditors will also assess your digital systems and networks for
vulnerabilities and provide valuable advice on how you can work
on plugging gaps or weaknesses.

4. Verifies the Accuracy and Integrity of Financial Statements Integrity is a

major requirement for businesses to flourish. If there’s any indication of
corruption or financial irregularities in a company, thiscould signal its
eventual demise. Investors and partners could pull out, and a company’s
instability and subsequent collapse may be just a few steps away.

With an internal audit, you can establish with accuracy (and with the help of
objective professionals) that your finances are intact and that everything is
in order. This, in turn, helps earn the trust (andinvestment) of various
stakeholders.

5. Helps Minimize Risk

An internal audit takes into account any or all identified risks to your
enterprise. It also evaluates whether your risk mitigation strategies are
working as intended.
When there are gaps, risks or inefficiencies that remain unaddressed, an
audit reports provides the information you need to resolve such concerns.

6. Ensures Compliance

Internal audits are designed to check and ensure your organization

is compliant with relevant laws, regulations, and industry standards.

If the compliance issues are found during the audit, the auditors give
recommendations on how your business can remedy the problema
effectively.

Schedule an Internal Audit Today!

An internal audit can assist management with its risk assessment process
and ensure that a company’s established system of internal controls is
delivering as it should.

If problems are identified, management can take this as an opportunity

to strengthen internal controls, improve efficiency and security, minimize
risk and ensure integrity and compliance – all of which are essential to
business growth.
BENEFITS OF BEING AUDITING

Audit and assurance services provide numerous benefits to management.

They can:

• Determine adequacy of internal controls

• Promote best practices for controls
• Ensure compliance with policies and regulations
• Identify operational inefficiencies and waste
• Review IT projects, systems, and technology
• Provide objective insight
• Assess efficient and responsible use of
resources
• Identify potential cost savings
 • Assist management in addressing complex,
cross-functional issues

Our office completes audits based on risk, time since last audit, and

management requests to ensure we are best meeting with the optimized

management.

Contact Us

Do you want to learn more? Do you want to schedule an

appointment or tell us about your business requirement? Fill out

the contact form on this page or call us, email us, or visit our
office (our contact details are in the footer below). We will be

glad to assist you.

www.ing-consultores.com

internal.audit@ing-consultores.com

+356 79530090

Triq Il Kbira(MLH2135)

Mellieħa. Malta