Internal auditing in an independent consulting and assurance activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal auditing therefore acts as a catalyst for improving an organisation's efficiency by providing insight and recommendations based on analyses and assessments of data and business processes.
The scope of internal auditing within an organization is broad and may involve topics such as the efficiency of operations, the reliability of financial reporting, deterring and investigating fraud, safeguarding assets, and compliance with laws and regulations.
Internal auditing primarily involved measuring compliance with the businesses policies and procedures. They advise management and the Board of Directors regarding how best to execute their responsibilities. As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds.
- Provides reasonable assurance that risk management, control and governance systems will enable the organization's objectives to be met.
- Report any issues or deficiencies directly to the audit committee and provide recommendations for improving the organisation's operations.
- Familiarity with the business world
- Ability to work in a team: both when employing internal and external resources and when communicating with management and the audit committee.