At HMR Accountancy, we believe that internal audit and compliance aren’t just about ticking boxes — they’re vital tools to help businesses stay on track, avoid risks, and build trust with clients, regulators, and stakeholders.

1. What is an Internal Audit?

An internal audit is like a health check-up for a company’s systems, processes, and controls. Instead of being done by outside auditors, it is performed from within or by independent internal audit teams. The goal is to check if processes are working well, identify weaknesses, and suggest improvements. Internal auditing helps businesses evaluate:

• How well they manage risks
  
• Whether their internal controls are effective
  
• If operations are efficient
  
• Whether rules and policies are being followed 

When done well, internal audits don’t just find problems—they provide a roadmap for making things better.

2. What Does “Compliance” Mean?

Compliance means following the rules—this includes laws, regulations, industry standards, and internal policies. For businesses, compliance means making sure they are operating legally and ethically, in line with the standards that apply to their sector. 

A compliance audit is a formal check to see whether a company is actually doing what it says it is—whether it’s “walking the talk” when it comes to rules and policies. 

3. Why Internal Audit + Compliance Go Hand in Hand

Internal audit and compliance are closely linked. When joined together, they offer a powerful way to safeguard a business:

• Spotting gaps early: An internal audit can uncover compliance risks before they become major problems.
  
• Improving processes: Audit checks often reveal areas where processes can be tightened. If a compliance audit highlights weaknesses, internal auditors can help recommend fixes.
  
• Preparing for external scrutiny: Businesses may face formal external audits or regulatory reviews. Internal audit helps ensure the company is ready, increasing confidence that compliance procedures are properly implemented. 
• Building trust and credibility: Knowing a company regularly reviews its controls and follows compliance standards can boost confidence among investors, regulators, clients, and other stakeholders. 

In short, internal audit doesn’t just serve compliance—it strengthens it, helping organisations operate better, safer, and more transparently.

4. Simple Internal Audit Steps (What to Expect)

If your business is planning to run an internal audit or compliance review, here are the typical stages—think of it as a checklist:

1. Planning: Define what part of your business will be audited, what the goals are, and what risks or policies will be checked.
   
2. Gathering information: Collect and review the relevant policies, procedures, documents, and process flows. This helps the auditor understand how things are supposed to work.
   
3. Testing controls and processes: Auditors will check whether controls are working as intended. This could mean reviewing transactions, interviewing staff, and verifying process steps.
   
4. Identifying findings: Where controls aren’t working, or policies aren’t being followed, auditors will note the problem, explain the risk, and suggest improvements.
   
5. Reporting and follow-up: Auditors prepare a report that outlines the issues, their causes, and suggested corrective actions. Management is expected to respond with a plan to fix the issues. Then follow-ups are done to check if corrective actions are implemented.
   

Doing all these steps well helps make sure audit recommendations are actually put into practice, reducing future risk and improving how the company operates.

5. How HMR Accountancy Supports Your Internal Audit & Compliance Needs

At HMR Accountancy, we know that audit and compliance can feel technical, time-consuming, or even intimidating. That’s why we offer tailored support to make the process smoother, more effective, and easier to act on. Here’s how we can help:

• Expert advice and planning: We help businesses design internal audit plans that are practical, focused, and linked to real risks—so you’re not auditing for the sake of auditing, but auditing for improvement.
  
• On-site or remote audit execution: Whether you want us on-site to review your documents or operating remotely, we carry out internal audits in a structured yet friendly way, checking how well your controls and policies are actually working.
  
• Simple, clear audit reports: We turn audit findings into easy-to-understand reports, highlighting what’s working well, what needs fixing, and how to fix it. We avoid jargon—so you get clear actions, not just dry observations.
  
• Compliance check-ups: We review your compliance systems—policies, procedures, staff training, risk registers—to check whether you’re meeting relevant laws and standards (whether financial, regulatory, or internal).
  
• Action planning and follow-up: Importantly, we don’t just hand over a report and leave you alone. We work with you to set corrective action plans and follow up to make sure improvements are happening and risks are being addressed.
  
• Training and guidance: If your team wants to understand internal audit or compliance better, or learn how to maintain good internal controls, we provide training, coaching, and guidance to help build internal capability.
  

6. Final Thoughts

Internal audit and compliance are not just box-ticking exercises. Done right, they help businesses spot risks, tighten controls, improve processes, and demonstrate to regulators, investors, and clients that they are well-run, trustworthy organisations.

If you’re a business owner, finance lead, or board member, setting up a thoughtful internal audit and compliance routine can save time, money, and reputational risk—while building stronger confidence in how your business operates.

At HMR Accountancy, we’re here to guide you through the whole process—making sure your audits aren’t just technical checks, but tools that deliver real, practical improvements. To learn more, or to arrange an internal audit or compliance review, visit hmraccountancy.co.uk and get in touch.