“It’s quite evident that clients often don’t see real value in audit services. They’re often regarded as a necessary cost without much real value. Auditors often struggle to communicate to clients the real value of these services, and, as a result, clients often question the fee associated with these services.
What many firms perceive as onerous obligations in relation to audits have also encouraged internal focus on cost management rather than assessment and communication of the benefits of the service to the client. As a result, focus is often more on a standardised approach to minimise costs than on an effort to really add value to clients through the audit process.
Key triggers for adding to the value of an internal audit are:
- Financial return on investment
- Insight into business processes
- Financial risk management
- Impact of strategic decisions
You should also be aware of the ‘soft’ emotional triggers that can have just as much influence on client perception of value. These may include:
- Effective engagement at commencement
- Transparency in relation to the scope of work
- Proactive communication at all times
- A sense of shared responsibility
- The extent to which you understand their issues
Step 1- Develop a value proposition that engages with your audit clients
The value proposition is a clear statement of the internal audit benefits to the client. It should be presented in such a way that it engages the client. For example, the value proposition for business audits may be “We will provide assurance that the company is operating as management intends. We will provide insight for improving controls, processes and performance as well as for reducing expenses, enhancing revenues and improving profits. ”
Some of the broader benefits of audits may include:
- Act as a catalyst for conversations in relation to people, values, culture and communication
- Focus discussions on actions that will reduce cost and improve controls.
- Allow for recognition of improvements that have been implemented over time.
- Identify issues to be put on the table from the beginning of the process, with a real discussion about how to address those issues.
- Allow for integration of issues from all sources to create a consolidated view of business issues.
- Provide feedback on the quality of the risk management framework and processes.
- Identify training requirements in relation to risk management and controls.
- Provide regular insight into business performance.
- Identify the potential future effect of proposed changes.
Step 2 – Incorporate the value proposition into the client engagement process
To incorporate ‘value’ in the scope of work, you first need to have a conversation with the client about their needs and issues. By understanding where they’re coming from, it’s much easier to present a proposal that engages them. Avoid handing out the generic audit engagement letter that you’ve used in the past. By now, you can probably see how disengaging this can be to clients. No wonder they question the value of a service that just appears to be focusing on compliance.
Step 3 – Follow through with clients as the audit is completed
A key benefit of an initial engagement process that really tells audit clients what you will do and why is that it gives you permission to maintain communication with the client as the audit proceeds. The simplest way to add value to the audit is to purposely gather information to discuss ideas for improvement with the client. This means that you’re creating a sense, in the client’s mind, that you’re working with them to address issues and uncover solutions. It means that at regular points during the audit process, you’re providing information and asking for feedback on what’s important to them.
Why internal audits matters beyond compliance
One of the most overlooked aspects of audit is the value of internal audit in supporting long-term business performance. While many organisations still view audit as a compliance requirement, internal audit plays a far more strategic role in identifying risks, improving processes and supporting better decision-making.
Understanding why an internal audit matters starts with recognising its position within the business. Internal audit operates independently while remaining closely connected to operations, allowing it to provide practical insights into how systems, controls and processes are functioning in real time.
Rather than focusing only on historical data, internal audit helps organisations assess whether current practices are aligned with business objectives and risk appetite. This forward-looking perspective supports continuous improvement.
Internal audit benefits for growing businesses
Internal audit benefits extend well beyond identifying issues. When implemented effectively, internal audit can support growth by providing clarity, accountability and structured oversight.
Key benefits include:
- Identifying inefficiencies in processes that may be limiting performance
- Strengthening internal controls to reduce financial and operational risk
- Providing independent insight into governance and decision-making frameworks
- Supporting management in prioritising key business risks
- Enhancing transparency for stakeholders and investors
Internal audit also plays an important role in fraud awareness and prevention. By reviewing controls and identifying weaknesses early, businesses are better positioned to reduce exposure to risk. This aligns with broader discussions around your auditor and fraud, where early detection and strong governance are essential.
Aligning internal audit with business strategy
To fully realise the value of internal audit, it must be aligned with the organisation’s strategic objectives. This means moving beyond a checklist approach and focusing on areas that have the greatest impact on performance and risk.
For example, an internal audit can be used to:
- Assess whether growth initiatives are supported by appropriate systems and controls
- Evaluate the effectiveness of financial and operational reporting
- Review the impact of organisational changes on risk exposure
- Identify gaps in governance frameworks as the business scales
As the profession continues to evolve, the role of internal audit is becoming increasingly integrated with strategy rather than limited to compliance.
Turning audit insights into action
One of the most important aspects of internal audit is ensuring that insights lead to action. Identifying issues alone does not create value. It is the response to those findings that drives improvement.
To achieve this, businesses should:
- Prioritise audit findings based on risk and impact
- Assign clear ownership for implementing changes
- Monitor progress against agreed actions
- Maintain ongoing communication between management and audit teams
This approach reinforces the idea that internal audit is an ongoing process rather than a one-off exercise.
Your next steps
To change the client’s perception of value, you first need to work on the value that your firm sees in the audit process to maximise internal audit benefits. Ensure that you have the right platform in place to maximise internal efficiency. Involve your accounting and audit staff in the discussion about what needs to be done to really engage your clients. Develop a communications strategy focusing on your value proposition and then show your clients how you’re adding real value.
Of course, no matter what you do in relation to engagement, some clients will just not be interested and will not see the value. Your challenge is to get through the work in as efficient a manner as possible to free up more time to add value to the clients that will value your engagement with them along the way.”
– Steven Watson, Managing Director – National Audits Group
Speak to our team about strengthening your internal audit approach
If you’re looking to better understand the value of internal audit and how it can support your business, speak to our team at National Audits Group. We work closely with organisations to strengthen governance, improve processes and deliver practical audit insights that support long-term growth.
Disclaimer: This article provides general information on internal audit benefits and audit practices. It does not constitute professional advice. Businesses should seek independent advice based on their specific circumstances to ensure compliance with applicable laws, standards and regulatory requirements.