Internal audits are a powerful tool for strengthening governance and improving business performance—regardless of company size. In Sri Lanka, many SMEs are realizing the benefits of adopting a proactive audit strategy.

Why internal audits matter:

• Detect and prevent fraud and operational inefficiencies

• Evaluate internal controls and compliance with policies

• Identify areas for process improvement

• Prepare for external audits or investor scrutiny

Regular internal audits provide independent, objective assessments that can reveal issues before they become costly problems. They also build credibility with stakeholders and create a culture of accountability.

We recommend SMEs conduct audits quarterly or semi-annually, tailored to business size and risk exposure.