An internal audit is a straightforward check on how your business actually runs behind the scenes. It looks at whether your approvals, records, and day-to-day controls work the way you think they do — and it catches the gaps while they are still easy to fix.
At Accountable Business Services (ABS), our CPA-certified team has worked with more than 500 clients over 15+ years, and we serve businesses across Canada in person and virtually. That experience matters here: many control problems are not dramatic. They build up quietly, as a business grows and the informal checks that once worked no longer cover everything.
What an internal audit actually is
It is not a CRA audit and it is not filed with a regulator. It is a review done for management and the board, to improve controls and operations.
An external audit gives an opinion on financial statements for shareholders or lenders; an internal audit tells you what to fix inside the business. The goal is practical: clearer processes, fewer surprises, and stronger confidence in the numbers you use to make decisions.
What it checks
A review can be scoped to one area or across the business, but it usually covers:
- Internal controls review — how financial reporting, approvals, and safeguarding of assets are handled.
- Risk assessment — the financial, operational, and compliance risks specific to your business.
- Segregation of duties — checking that no single person has unchecked control over a financial process end to end — a common fraud risk point.
- Compliance testing — whether operations line up with relevant regulations, policies, and industry requirements.
- Operational efficiency — process gaps that quietly cost time or money.
The work ends with a findings and action report that ranks findings by risk, with practical recommendations — so you know what to fix first and what can wait.
Signs your Toronto business may need one
You may benefit from an internal audit if any of these sound familiar:
- You have added staff and the old way of approving things no longer fits.
- One person handles a whole financial process alone.
- You are preparing for a future external audit, a loan, or a grant report.
- You suspect a control gap or an irregularity.
- Growth has outrun your written procedures.
- A board, funder, or partner wants independent assurance.
Small and mid-sized businesses often benefit most, because fewer staff usually means less separation of duties. That is not a criticism of a small team — it is exactly why an outside review can help.
What happens during the review
- Free consultation and scoping: which areas need review first.
- Risk assessment: focus where exposure is highest.
- Fieldwork and testing: documentation review, control testing, and staff interviews as needed, scheduled to limit disruption.
- Findings report: issues ranked by severity with specific recommendations.
- Follow-up support: help implementing changes and a follow-up review if needed.
Learn more about ABS internal audits and how a review is scoped around your business.
Visit ABS in Toronto
ABS serves Toronto businesses in person at its Toronto office and remotely across Canada. You can also learn more on the Toronto page.
Address: 36 Toronto Street, Suite 850, Toronto, ON M5C 2C5
Hours: Mon–Fri 8am–9pm, Sat 9am–5pm
Related reading
- Management Reports for Calgary Businesses: What to Read Every Month
- CRA Audit or CRA Letter in Canada: What to Do First
If you are not sure where your controls stand, start with a free 15-minute consultation. Book through the Contact page and ABS will help scope a review around what matters most to your business.