Internal auditing activity adds value and improves the company’s operations by

providing insight and objective assurance that governance and risk management
processes are efficient and effective. The insights from the auditor give the company
awareness of the struggle they are going through or about to go through. This
mindfulness, as explained by the Chartered Institute of Internal Auditors, will eventually
turn into a well thought out solution and strategies to overcome and avoid the
occurrence of the same challenge once again.

It also evaluates if the existing internal controls are adequate to mitigate the
organization’s risk and organizational goals and objectives are met. As part of the three-
line defense, it identifies the risks that could impede the organization to attain its aims
and communicates those risks to those charged with governance. In a way, it
guarantees, too, that the corporation adheres to the standards and laws that govern
them as internal auditing function plays a huge role concerning disclosure of material
pieces of information. Overall, internal auditing activity brings a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control, and
governance processes and to assure the organization’s stakeholders that regulations
are strictly complied with.