internal audit


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Related to internal audit: internal control

Internal Audit

The process of reviewing business activities in-house to identify inefficiencies, reduce costs, and otherwise achieve organizational objectives. Internal audits may investigate potential theft or fraud and ensure compliance with applicable regulations and policies. They also assist in risk management. In a large company, especially a publicly traded one, internal auditing is conducted by a board independent from any management and answerable only to an audit committee, a subcommittee on the board of directors. The growth of internal audits accelerated following the 2002 passage of the Sarbanes-Oxley Act, which increased the accounting regulations for public companies.

internal audit

The examination of a company's records and reports by its employees. Internal audits are usually intended to prevent fraud and to ensure compliance with board directives and management policies. In contrast, the financial statements presented to stockholders are typically prepared by outside parties to ensure absolute objectivity. Compare external audit.

internal audit

see AUDIT.
References in periodicals archive ?
Under the internal audit system, a centralised wing called Provincial Internal Audit Cell (PIAC) has been established at the Finance department.
He pointed out that SBP had invested heavily in getting the right skills and expertise for its internal audit function.
Two salient factors that should be focused upon are the organizational positioning of the internal audit function, and the reporting relationships of the Chief Audit Executive (CAE).
Forty percent of respondents said talent quality or capacity is a barrier to delivering maximum value for internal audit teams.
Factors associated with IT audits by the internal audit function.
Chambers argues that internal audit needs to focus still more on strategic risks and on the effectiveness of the company's risk management efforts.
To meet these standards and enable the supervisor to manage the Department of Internal Audit in a manner that can achieve these goals, the following have to be considered:
This has been a particular concern since the enactment of Section 404 of the Sarbanes-Oxley Act of 2002, which has resulted in internal audit functions devoting more resources to evaluating and improving internal controls.
Oftentimes internal audit will be able to help corporate leaders identify, assess and monitor progress against items on this list and identify opportunities for business performance improvements.
write that changes to the definition of internal auditing have increased the scope of internal audit by explicitly including consulting activities, providing a comparison of the nature, extent and consequences of the definitional change on internal audit consulting activities undertaken by a sample of IIA members in the UK/Ireland and Italy.

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