internal audit

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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 ?
When implementing internal auditing, a company would naturally look to the auditor's experience and expertise for input, alternatives and recommendations.
Each of the 14 profiles in the new Internal Auditing Around the World describes successes, challenges and lessons learned from the various internal audit teams within these companies as they work to assist management and the audit committee to address financial reporting, regulatory compliance and numerous other process risks.
But a lesser-known recruitment involves hundreds of former Andersen professionals in the internal auditing and business risk consulting practices to a new firm called Protiviti Inc.
For example, the audit committee review of the appointment or replacement of the senior internal auditing executive is intended to provide the same measure of independence from excessive influence by management as the audit committee recommendation of an external audit firm provides to the external auditor.
The step is, also, in line with the bank Board's commitment to develop SIB's internal auditing practices by obtaining quality assurance from renowned and internationally recognised professional associations.
The correlation between internal auditing performance and information technology was 0.
check] Ensure that internal audit's activities fully comply with The International Standards for the Professional Practice of Internal Auditing.
Whatever the consensus or disagreement among historians on the origins and development of internal auditing over time, it can be determined that the concept and methodology of the modern internal auditing started by 1941; founded by the Foundation of the Institute of Internal Auditors (IIA) in Florida, USA.
Tarling, who is also a senior vice chairman, Global IIA, was addressing the First Saudi Internal Auditing Forum (SIAF) organized by the Saudi Institute of Internal Auditors (IIA) at the InterContinental Hotel and attended by Minister of Commerce and Industry Tawfiq Al-Rabiah, who is also chairman of the board of directors of the institute, as the guest of honor, and SAMA (Saudi Arabian Monetary Agency) Gov.
What internal audit should do is described in the definition of internal auditing from the Institute of Internal Auditors (IIA):
Many companies have made large investments in internal auditing in recent years and they want to ensure that the internal audit function is adding value to their organizations.

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