A heart attack is a condition that develops due to a sudden decrease or interruption of the blood flow of the vessels that supply the heart for various reasons. An institutional heart attack , on the other hand, is a concern that develops due to a sudden decrease or interruption of the flow of information in the veins that feed the organization's workflow processes for various reasons. The vast majority develop as a result of the blockage of the veins that feed the workflow processes by wrong decisions... An Internal Audit Service, which includes many financial and operational support content such as Corporate Risk Management, Fraud Audit, activity Audit, Compliance Audit, gives your business a risk-oriented perspective.

Every business owner pulled a picture of what's happening in the firm as financial or operational in summary, yourself is forwarded to all activities and operations in the enterprise, covering all the risks on the analysis of the near or distant future, to provide enough savings to determine whether or not determine whether you are employees or managers working effectively and efficiently requires knowledge of whether the most accurate. The only address where all these needs can be met is to use the ‘Internal Audit Service ‘with outsourcing.

According to research conducted, on average, each company loses 5% of its revenue due to abuse, poorly designed processes and lack of internal control of the business. When this ratio is applied to the world's national product, an amount of about 3.7 trillion dollars is reached. The most effective way to prevent this is to strengthen the internal control structure of the enterprise.

If we refer to the film" Don't shoot the kite", you will remember that in one scene of the film, the director gives the officer a job; then he sends the second officer behind the first officer, asks him to check whether the work was done, and then sends all three officers, telling him to check whether the work was done, whether it was checked. Control the one who controls! Don't say where this came from; Enron and Parmalat scandals in Greece brought into question the data explained, many of the country's economy was supposed to be off the record, about half was caused by the fast movement of hot money inflow and the outflow of hot money and the crisis could be brought under the control of the idea that Turkey and finally attempted to be played on game Hay, auditing services and leads to new and more powerful agenda of the business regulation and highlights the importance of ensuring the strengthening of the internal control structure.

Another benefit that internal audit provides to firms is inventory management. Imagine that every day, when as much bread is taken into the house as needed, one of the households buys an extra bread, even though it is not a duty (competent). The excess bread taken that night stays the next day. On the following day, the mother puts the fresh bread taken that day in the bread basket, saying that we will finish the bread left over from yesterday first. A surplus of bread bought leaves the House longing for bread that is eaten hot and fresh every evening. Purchases and plans that will be left to those who do not know the job always cause you to eat stale bread with the same source. Another consideration that should be mentioned is that businesses should pay attention to performing inventory management within this framework.

If it's about the importance of Risk, we can quote a case. Once Upon a time, there was a famous King who ruled... the mosquitoes that appeared from the swamp around this king's country caused the people of the country to miss the peace and health problems began to appear in the country. The King has sent an edict that he will come before all the sages to seek a cure for the drying up of the swamp that surrounds the country. Eventually, the swamp dried up with the solution produced by a sage, and the mosquitoes were eliminated. But it is clear that the king and the sages never clearly measured the risk. Because the swamp around the country prevented the invasion of the country by enemy soldiers. So it's possible to get rid of mosquitoes, but there's another big risk. If we describe the king in this case as a business manager or owner, business risks need to be analyzed in great detail, just as in this case. Ultimately, you should make sure that this does not lead to other risks when eliminating risks and hazards in companies.

Besides,”the biggest risk is not taking any risks at all." If you don't take any risks, of course you miss 0 of your goals because you don't shoot at all. However, it is useful to take computable risks. Because if things don't go as planned, then you should manage your risk from a more experienced perspective and identify your risk appetite.  Because uncertainty, chaos and change bring risks and opportunities.  Companies that manage the stated risks and opportunities well will survive, while others will unfortunately shrink or disappear.

The concept of Risk comes to life in your business in a wide range, from misuse of company assets to corruption, from poorly managed processes to improper performance measurements and system risks. 

Bill Gates has a famous saying:”If your processes are bad, technology investment does not improve them, it makes them worse than before." “If your company is mismanaged by bad managers, technology makes all things worse,”he added. For example, close to 70% of businesses currently do not have a cyber risk scenario. Firms must develop much more effective and efficient methods to deal with the complex system posed by the cyber threats they face.

If we associate the definition and benefits of internal audit that we have mentioned so far with the construction sector, which is a risky sector, and make it concrete, first of all, research predicts that part of the construction spending consists of improper spending. Fighting these expenses, which are mainly caused by goods and services that never take place and are supplied more expensive than they should be, has become one of the most important problems of both investors and contracting firms. In order to examine the operations of construction expenditures, which are increasingly difficult to control, companies need effective and useful solutions and audits by developing specific methods. Proactive audits are also aimed at preventing irregular expenditures. Reactive audits, on the other hand, aim to identify those responsible for improper expenses, calculate their size and determine the points that need to be improved so that they do not occur again.

In fact, no business is rich enough to tackle abuses.

Because honesty is not a cost to businesses...

Differentiate your business by providing as much proactive orientation as you want in one step with enough control, oversight, process management and audit....

Internal audit is a kind of ‘check-up ' that actually allows early diagnosis to protect your business from cheating and prevent your business from having a heart attack. Because the auditor investigates and reports what should actually be with the figures in the documents and eliminates the risks before they occur.

Let's not forget;
“Always more money was stolen with the tip of the pen, not with the barrel of the gun.”

Assist.Assoc.Dr.Cevdet Kızıl (MBA, MS, Ph. D.)D., CPA-SMMM, CICA)

Funda beautiful redhead (MA, CPA-SMMM, CICA) - Member of MIAD

Red audit, consulting and tax services