Internal audit
Internal auditing is an independent and objective assurance and consulting activity designed to add value and improve an organisation's operations. It is a systematic and disciplined approach to evaluating and improving the effectiveness of an organisation's risk management, control, and governance processes.
The main objectives of internal auditing are:
to provide assurance to the organisation's management that its systems of internal control are working effectively.
to evaluate the effectiveness and efficiency of the organisation's operations.
to provide recommendations for improving the organisation's processes and controls.
to ensure compliance with laws, regulations, and company policies.
Internal auditing is usually conducted by a team of professionals who are independent of the organisation's day-to-day operations. The internal audit team typically reports to the organisation's audit committee or board of directors, and they are responsible for providing regular reports on their findings and recommendations.
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Internal auditing covers a broad range of areas, including financial reporting, compliance, operational efficiency, and risk management. The scope of the audit is determined by the organisation's audit committee or board of directors, based on an assessment of the organisation's risks and priorities.
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Internal audit is an important function within an organisation, as it provides independent assurance to management and the board of directors that the organisation's processes and controls are effective and that risks are being managed appropriately.