Today, in the face of economic uncertainty, companies around the world are faced with the need to maintain financial stability and competitive advantage in the market.
At the same time, the service sectors are the first to suffer. In such a situation, the internal audit service can come to the aid of the business.
A little about internal audit
Internal audit services are created both in manufacturing enterprises and in service organizations. The main role of internal audit is to be a “business partner” and to contribute to profitable long-term growth and the achievement of other goals of the organization.
In some organizations of the financial sector, for example, in banks and insurance companies, the presence of an internal auditor on the staff of the company is a mandatory regulatory requirement.
The main functions of internal audit are to give shareholders, the board of directors, and management an independent assessment of the effectiveness of internal control, risk management, and corporate governance systems.
To do this, the best audit firms in Delhi conduct audits of all areas of the company’s activities: for example, insurance and non-insurance business processes, finance, compliance, quality of customer service, etc.
Audits are carried out by top audit firms in Delhi based on a risk-based approach, which is expressed in the following aspects:
Risk-based annual planning. Based on the conducted risk assessment, the auditor determines the list of the riskiest areas for the next year. He also forms an audit plan, which is then submitted for consideration and approval to the company’s board of directors. During the year, the audit plan may be adjusted depending on the reassessment of risks or the emergence of new risks.
Risk-based approach within individual audits. Assessment of inherent and residual risks, assessment of the effectiveness of control procedures aimed at minimizing risks.
Based on the results of the audit, an audit report is drawn up containing:
- Conclusion on the state of the internal control system of the audited business process;
- Positive and negative observations;
- Recommendations that are aimed at reducing risks and optimizing business processes or their individual elements.
Service quality assessment
In the insurance sector, competition is traditionally high, and the level of service is very important. Let’s look at several approaches to conducting an internal audit to assess the quality of insurance services.
Audits on the topic
- Separate thematic audits of customer service quality at each stage of customer contact. For example:
- At the stage of concluding insurance contracts
- At the stage of customer support
- At the stage of a claims settlement.
These audits typically assess reputational and customer loss risks and regulatory risks, if applicable.
After the key risks have been identified, audit firms in Delhi evaluate the company’s control procedures that help minimize these risks. A standard set of such procedures usually includes:
- Availability and effectiveness of compliance with internal standards of customer service quality;
- Availability and effectiveness of using customer satisfaction surveys, measuring the consumer loyalty index;
- The presence of motivation of employees involved in customer service processes, indicators of the quality of customer service;
- Availability and efficiency of use of audio and video control tools in customer service, etc.
As a separate audit procedure that will be useful for the business, it is possible to conduct a comparative analysis of the audited area by industry or in related areas.
This content is meant for information only and should not be considered as an advice or opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by
CA Aman Aggarwal
AKGVG & Associates