By: Iroshee Shanika Jayathilaka
Senior Partner
Jayasinghe & Co.
15th October 2025
When people hear the term “internal audit”, they often picture checklists, compliance reviews, and formal reports. But in reality, internal auditing is far more than a box-ticking exercise — it’s one of the most valuable tools an organization can use to build strength, transparency, and long-term success.
So, is internal auditing worth doing?
Absolutely — if it’s done with purpose.
What Internal Auditing Really Means
Internal auditing isn’t just about finding mistakes or catching someone doing something wrong.
It’s about understanding how the organization operates, identifying risks before they turn into problems, and helping management make better decisions.
A strong internal audit function looks at:
- The effectiveness of internal controls
- Compliance with policies, laws, and regulations
- Opportunities to improve efficiency and performance
- Areas where fraud or loss could occur
- The overall governance and risk management framework
In simple terms — internal auditing asks:
“Are we doing the right things, in the right way, and getting the right results?”
Why Internal Auditing Is Worth the Effort
1. It Strengthens Controls and Prevents Problems
Internal audits identify weaknesses early — before they lead to financial losses, compliance issues, or reputational damage.
2. It Improves Efficiency
Auditors often uncover duplication, waste, or outdated processes. Many organizations recover the cost of the audit through the savings it helps generate.
3. It Builds Credibility and Confidence
For listed companies, donors, and investors, an active internal audit function sends a powerful message: “We take accountability seriously.”
4. It Supports Better Decisions
Internal auditors provide independent insight to management, highlighting risks and opportunities that might otherwise go unnoticed.
5. It Adds Long-Term Value
Beyond compliance, auditing helps create a culture of continuous improvement — where people think critically about controls, risks, and ethics.
When Internal Auditing Loses Its Value
Like any system, internal auditing only works if it’s done sincerely. It can lose value when:
- It’s treated as a formality rather than a tool for improvement
- Recommendations are ignored by management
- The audit team lacks independence or expertise
- The organization is too small to justify a full-time internal audit function
Even then, small entities can still benefit from periodic independent reviews to ensure things stay on track.
The Bottom Line
Internal auditing is not just about control — it’s about confidence, clarity, and continuous improvement.
When implemented thoughtfully, it protects the organization, strengthens decision-making, and adds measurable value.
So yes — internal auditing is worth doing.
The real question is: Are we ready to make the most of it?