Internal auditing is an independent, objective, assurance and consulting activity that adds value to and improves an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. The internal audit activity provides assurance to management and the audit committee that risks to the organization are understood and managed appropriately. And it serves as an in-house consultant on many areas of interest.
Every organization, regardless of its size, should have some type of internal control system or process in place. The Institute of Internal Auditors (IIA) believes that an organization is best served by a fully resourced and professionally competent internal audit staff that provides value-added services critical to efficient and effective organizational management.
Internal audit practitioners are charged with assisting the organization in the effective discharge of responsibilities, promoting the establishment of cost-effective controls, assessing risks and recommending measures to mitigate those risks. An integral part of the management team, internal auditors furnish top management with analyses, appraisals, counsel and information on the activities they review. They also monitor organizational ethics.
The comprehensive scope of their responsibilities provides them with a broad perspective on the organization. And that, in turn, makes them a valuable resource to executive management and the board of directors in accomplishing overall goals and objectives, as well as strengthening internal control and governance. This might be a lot to ask from one organizational resource, but for internal auditors — it’s all in a day’s work.
Source: The Institute of Internal Auditors