When Is Internal Audit Needed for Non-Financial Functions?
Business expansion or organisational change
Rapid growth, new locations, product launches, or acquisitions can outpace existing controls, increasing operational and governance risks.
Operational issues or performance losses
Inventory variances, margin pressure, project overruns, warranty claims, or high return rates often indicate control weaknesses that require independent review.
Implementation of new systems or technology
ERP, POS, or WMS implementations require assessments of access controls, change management, and data migration to minimise operational disruption.
Procure-to-pay control gaps
Risks may arise in supplier onboarding, conflict management, three-way matching, capital expenditure approvals, and payment processes.
Supply chain and inventory exposure
Oversight of third-party logistics, inventory accuracy, obsolescence, shrinkage, and vendor performance benefits from structured internal audit review.
Stakeholder assurance requirements
Boards, owners, lenders, and business partners often expect independent confirmation that operational controls are effective and reliable.