Internal Audits evaluate a company’s internal controls, including its corporate governance and accounting processes. It is an independent objective assurance and consulting activity designed to add value and improve operations of an organization. The scope of internal auditing within an organization is broad and may involve topics such as an organization's governance, risk management and management controls over: efficiency/effectiveness of operations (including safeguarding of assets), the reliability of financial and management reporting, and compliance with laws and regulations.
Internal audit may take place on a daily, weekly, monthly or annual basis depending on the need. Some departments might be audited more than other if need be. For example HR department does not need a daily audit whereas a department related to manufacturing can be audited daily for quality control.
People generally tend to think that the motive behind audit is just to check accounts and vouchers, but now as we know the importance of internal auditing let us see the broader functions of Internal Audit:
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.
An internal audit is a form of audit process that occurs within the organisation to assess the conformity of internal processes and systems.
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.
Internal auditors are expected to provide recommendations for improvement in those areas where opportunities or deficiencies are identified.