Using GRC Software to Manage Internal Audits

Not so long ago, internal audits revolved around manual processes and managing complex spreadsheets, in-fact this is still often the case. Times have however changed in the past couple of decades and internal auditing has become not only an essential process for business success but also a mandatory requirement. Challenges and complexities continue to grow just as technology continues to evolve into the cloud. Nowadays, businesses are able to wholly use electronic records which are stored in the cloud, reducing the burden of paper trails. The following article explores the value of using GRC software to manage internal audits.

Why are Internal Audits important?

Internal audits typically refer to the pre-emptive process of evaluating and improving the overall effectiveness of governance, risk management and control processes within an organization. While it may seem like internal audits are mostly about assessing internal processes, they also focus on the overall well-being and success of the organization in question.

Mandatory ISO 27001 9.2 Requirement

Internal audits are now a mandatory requirement if you're looking to keep your organization compliant with the ISO 27001 information security management standard. ISO 27001 is an internationally auditable standard that clearly defines the requirements for an Information Security Management System (ISMS).

Clause 9.2 of ISO 27001 specifically requires an organization to conduct internal audits periodically to provide insights into whether its ISMS conforms with its own requirements, complies with the ISO 27001, or whether the ISMS is effectively implemented and maintained.

Being ISO 27001 compliant demonstrates that your organization has taken proactive steps to identify risks and their impacts, and also put controls in place to limit their impact on your business. If you're concerned about information Security best-practice, the ISO 27001 is the global benchmark.

Good Corporate Governance

By performing internal audits, your organization will be displaying good corporate governance as it evaluates the company's internal controls and ensures compliance with relevant laws, regulations, and also provides the opportunity for corrective/preventative actions prior to an external audit.

Internal audits serve as a crucial preparatory step before facing external scrutiny. This proactive approach allows your company to identify and rectify any potential issues early on. By doing so, you ensure that when external auditors arrive, they encounter a company that is not only well-prepared but also compliant with all relevant regulations.

Here's how it works:

• Identify Issues Early: Internal audits allow you to catch discrepancies or compliance issues before they become larger problems.

• Implement Corrective Actions: Once issues are identified, you can take corrective or preventative measures to enhance your systems.

• Enhance Preparedness: By addressing these issues in advance, your organization stands ready for the external audit with confidence.

Through these steps, internal audits not only bolster your company's governance but also streamline the external auditing process, ensuring a smoother and more efficient evaluation.

Improved Stakeholders' Confidence

Since internal audits assess key factors that impact an organization's survival—such as risk management, compliance, and operational efficiency—conducting regular internal audits demonstrates a commitment to transparency and accountability. By identifying weaknesses and ensuring corrective actions are taken, internal audits provide stakeholders with assurance that the organization is well-managed and resilient against potential threats.

This increased confidence can strengthen relationships with investors, regulators, customers, and business partners, ultimately enhancing the organization’s reputation and long-term stability.

Fraud Detection and Quality Assurance

By regularly performing internal audits in your organization, you're more likely to uncover evidence of fraud and even areas of wastage and abuse. Using GRC software to manage internal audits also means that you can do this regularly and with less stress.

Internal audits act as a reality check, stripping away assumptions to reveal the unvarnished truth about your operations. They highlight gaps in your processes before they escalate into significant problems, showing whether your systems are genuinely effective or just superficially appealing.

With a well-executed internal audit, you'll uncover weaknesses that, if ignored, could lead to substantial issues such as financial discrepancies, security breaches, or regulatory penalties. The real value, however, lies in the opportunity to course-correct. Audits provide actionable insights that empower you to strengthen controls, tighten security, and enhance overall performance.

By integrating these audits into your routine with the help of technology, you gain a clearer understanding of your organization's strengths and vulnerabilities, making it easier to address them proactively.

How Internal Audit Management Software Facilitates Real-Time Collaboration

Internal audit management software is pivotal in transforming how teams coordinate by offering powerful tools that enhance communication and data sharing.

Real-Time Data Access

With these platforms, team members can access the latest data instantly. This eliminates the lag caused by multiple email threads and outdated spreadsheets, allowing auditors and risk managers to work with the most current information.

Seamless Communication Tools

Built-in communication features, like chat and notifications, keep everyone informed and engaged. Instead of juggling various platforms, teams can communicate directly within the software, which streamlines discussions and decision-making.

Centralized Documentation

Document sharing capabilities ensure that all team members access a single source of truth. This reduces the risk of inconsistencies and misinterpretations and allows for tracking version histories efficiently.

Collaboration Features

Many of these software solutions include features like task assignments and progress tracking. This ensures that responsibilities are clear, and deadlines are met, fostering a sense of accountability and cohesion among team members.

Integration with Third-Party Tools

By integrating with well-known platforms such as Microsoft Teams, Slack, and Google Workspace, internal audit software maintains flexibility and connectivity without forcing users to abandon familiar tools. This compatibility reduces the learning curve and enhances overall productivity.

Overall, by consolidating essential functions into a unified platform, internal audit management software empowers teams to operate more effectively and more collaboratively.

What to Look for in Internal Audit Management Software

Choosing the right internal audit management software is essential for enhancing the efficiency and effectiveness of your audit processes. Here are some critical factors to consider:

• User-Friendliness: Software that is intuitive and easy to navigate is crucial. If the tool is complicated or cumbersome, auditors will find themselves spending an unnecessary amount of time trying to master the software instead of focusing on actual auditing tasks.

• Tailored Solutions: It's important to select a platform that allows for customization to suit the unique requirements of your organization. Generic solutions often fall short, so ensure the software can adapt to your specific auditing procedures and reporting needs.

• Integration with Existing Systems: Effective audit management software should seamlessly connect with other critical systems within your organization, such as financial software, ERP solutions, and compliance tools. This integration minimizes data silos and streamlines your processes.

• Room for Growth: As your organization expands, your auditing needs will evolve. Opt for software that can scale alongside your organization, ensuring it remains relevant and effective for years to come.

• Reliable Vendor Support: Inevitably, issues will arise, or you'll need guidance. Choose a provider known for outstanding customer support, comprehensive training resources, and regular updates to keep the software running smoothly.

• Customizable Reports: Organizations can transform the way they interpret audit data and risk insights, leading to more informed decision making.

StandardFusion's GRC auditing solution essentially makes life easy by eliminating the complexities of manually managing the different stages or processes involved in the internal audit. Using StandardFusion's GRC software solution for your audits, you'll place your organization in a strong position to better align your strategic goals and operational requirements.

How Customizable Reports Enhance the Delivery of Audit and Risk Insights

Customizable reports are a game-changer in the realm of audit and risk management. Here's how they can significantly elevate the process:

• Personalized Information Access: By allowing businesses to tailor dashboards and reports to their specific criteria, customizable reports ensure that relevant audit and risk information is presented in an accessible and meaningful way. This personalization is crucial for different departments that require different data points or formats.

• Improved Decision-Making: When organizations can adjust reports to focus on their most pertinent risks and audit results, decision-makers receive clearer insights. This precision supports quicker response times and more effective strategies to address potential issues.

• Efficiency and Time Savings: Typically, standard reports can be cluttered with unnecessary data, making it hard to find what truly matters. Customizable reports streamline information flow, removing the clutter and enabling teams to focus sharply on critical insights, thus saving valuable time and resources.

• Enhanced Collaboration: With reports that reflect specific organizational needs, teams across different departments can speak a common language regarding risk assessment and audit results. This fosters better communication and joint problem-solving, as everyone is aligned with the company's risk posture and compliance status.

• Scalable Solutions: As organizations grow and their needs evolve, customizable reports provide the flexibility necessary to adapt. Whether it's expanding operations or diving into new markets, these reports can be adjusted to reflect the latest objectives and risks, making them indispensable for dynamic business environments.

What is the Importance of Integration Capabilities in Audit Management Software?

In the realm of audit management software, integration capabilities are pivotal. But why exactly does this matter for your organization?

1. Seamless Data Flow:
Effective integration ensures that your audit software communicates efficiently with existing systems such as financial software, Enterprise Resource Planning (ERP) systems, and compliance tools. This seamless data exchange reduces manual data entry, cutting down on errors and saving valuable time.

2. Enhanced Efficiency and Accuracy:
When your audit software integrates smoothly with other platforms, it significantly boosts the accuracy of your reports. Real-time data syncing means auditors have access to the latest information, leading to more precise analysis and decision-making.

3. Streamlining Workflows:
Integration allows different departments to collaborate more effectively. For instance, auditors can easily access financial insights or compliance records, creating a more comprehensive audit trail without unnecessary back-and-forth communication.

4. Improved Compliance and Risk Management:
Integration helps in maintaining compliance with industry standards and regulations. By pulling relevant data from compliance tools or systems, organizations can better manage risks and ensure all aspects of audits adhere to the required guidelines.

5. Scalability and Future-Proofing:
As your business grows, the need for software that can adapt and integrate with emerging technologies becomes essential. A platform with robust integration capabilities can future-proof your operations, accommodating new tools and systems as needed.

In essence, the ability for audit management software to integrate effectively with other systems within your organization is not just a convenience—it's a necessity for maintaining efficiency, accuracy, and compliance in an increasingly interconnected landscape.

Closing Thoughts

Times are changing fast and in today's business world, time is truly of the essence. More businesses are steadily making the switch and opting to use a GRC software solution to manage their internal audits.

StandardFusion offers a highly intuitive GRC software solution that makes compliance and risk management simple and straightforward, just as it should be. You can request a demo today to see firsthand how StandardFusion truly takes the complexities away from managing your internal audits.