Expertise Finance

Securing internal processes is essential to ensure the reliability of company operations. Internal control helps detect and prevent errors, fraud, and organizational dysfunctions. 🛡️ It relies on a combination of good practices: task segregation, traceability, automated controls, and regular review of procedures.

For instance, a company may implement a multi-level approval system for any expenditure exceeding a certain amount. This greatly reduces the risk of wrongdoing or omissions. Internal audit assesses the robustness of such measures and identifies possible “loopholes” (unsupervised tasks, duplicate approvals, unsecured access, etc.).

In France, Article L. 823-16 of the Commercial Code requires the statutory auditor to examine internal control procedures related to the preparation of financial statements. Failure to comply may lead to civil or even criminal liability for executives.

Effective internal control also reassures employees, as it creates a clear, fair, and predictable framework. It prevents power abuse, distributes responsibilities, and increases transparency. Finally, a well-organized company inspires confidence among investors, partners, clients... and regulators. 🔍

Compliance with legal obligations is essential for any responsible business. 📚 Many laws now govern corporate governance, traceability, data security, and risk prevention. The role of internal audit is to ensure that these rules are understood, applied, and monitored over time.

Some of the most important regulations include:

• GDPR (General Data Protection Regulation): requires the protection of personal data.
• Sapin II Law: strengthens anti-corruption efforts and requires the implementation of internal control systems.
• Commercial Code, Article L. 823-16: mandates internal control over the preparation of financial information.

Non-compliance may lead to significant financial penalties, tax adjustments, or reputation loss. 💣

Internal audit acts as a legal radar. It identifies gaps, recommends corrective actions, ensures follow-up, and anticipates regulatory changes. It helps management make informed decisions. ✅

It’s also a sign of transparency and professionalism for third parties: banks, investors, tax authorities… A lack of compliance could jeopardize a tender, fundraising, or certification process.

Internal control is not just a compliance tool — it’s a strategic performance driver. 🚀 Through process analysis, internal audit highlights inefficiencies, redundant tasks, and misaligned priorities, while suggesting improvements.

For example, if invoice validation takes too long, the audit might recommend automating approvals below a certain threshold or merging fragmented tasks. This results in faster workflows, lower costs, and greater efficiency. 💡

Performance indicators (KPIs) are also assessed: case processing rates, average response times, error rates, etc. These objective data support executive decisions and help align teams with company goals.

Internal audit also fosters innovation by recommending tools (ERP, reporting software) that modernize operations. This can lead to a full transformation of working methods, yielding long-term benefits.

Finally, a high-performing company is also more resilient: it better handles crises, anticipates resource needs, and controls cash flow. 📊

In a volatile economy, companies must build trust with all stakeholders: banks, clients, insurers, investors, and public authorities. 💼 An active internal audit is seen as a sign of transparency, risk control, and reliability.

For example, a financial partner will closely evaluate internal governance before approving credit or investment. Audits demonstrate that the company controls its procedures, manages costs, and complies with laws — all reassuring signals.

Audit reports can even be shared (summarized) with third parties to show progress or compliance. In fundraising, this builds confidence in the company's ability to manage funds responsibly.

It’s also a competitive advantage: audited companies are rated better by insurers, more credible in public tenders, and more attractive to partners.

In short: internal audit builds your reputation — quietly, but powerfully. It demonstrates high standards and long-term trustworthiness. 🤝