Importance of Internal Audits
__(It is that time of year/The time has come again/etc.)__ to perform internal audits in our organization. And with that, I’d like to take this opportunity to briefly review with you the importance of conducting internal audits within a corporation.
As most of you know, internal audits not only ensure integrity of the financial reporting process of an organization, they are also instrumental in improving the effectiveness of risk management and can help the corporation to accomplish its objectives in operational processes. Equally as, or perhaps even more important, internal audits also serve to evaluate the effectiveness of fraud detection check points within a corporation.
Studies have shown that corporations who outsource their internal audit functions are less likely to detect fraud than those who undertake even a portion of the internal audit function themselves. These findings suggest that self-administered internal audits add significant value by improving control within the organization through monitoring of the environment to detect fraud and errors. Therefore, suffice to say that our own internal audit committees in this company perform fundamental governance that cannot be minimized.
In keeping with this, I now ask you to schedule a meeting with the internal auditor members of your respective departments to receive an overview of the internal audit process. __(Optional: Please find overview materials enclosed)__. If you have any questions regarding this, kindly contact __(person and contact info.)__.
I thank you for your attention to this important matter.