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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

internal audit

see AUDIT.

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References in periodicals archive

He pointed out that SBP had invested heavily in getting the right skills and expertise for its internal audit function.

SBP committed to enhancing role of its internal audit

Effective working relationships between audit committees and internal audit, J manage Gov DOI 10.1007

Investigate the information technology relation on internal auditing characteristics

Accepting the need to carry out internal audit functions doesn't necessarily mean hiring staff to do it.

Understanding your company's inner workings

* Reinforce internal audit's objectivity and independence, and its accountability to the audit committee.

Internal audit's shifting mandate: how the audit committee can help ensure that internal audit is properly focused, fully utilized, and delivers value

The supervisor coordinate the efforts of both the internal audit department and external auditor.

Standards of professional practice and professional conduct of internal audit

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.

Internal audit's role in IFRS conversion

Brendan Nelson, audit committee chair at energy giant BP, said: "One of the best ways to help organisations better protect their assets and manage risk is to boost the status, standards, scope and skills of internal audit.

Auditors 'should have unlimited access' at firms

Academic research in internal audit provides best practices and pertinent information for external and internal auditors.

Highlights of internal audit research

Keywords: IAE, Internal audit independence, Management support, IT, Banking industry.

Does Information Technology (IT) Expedite the Internal Audit System? Determinants of Internal Audit Effectives: Evidence from Pakistani Banking Industry

The event brought together over 30 internal audit leaders including government auditors, risk managers, statutory auditors, and compliance professionals and from the university.

IIA hosts Arabic internal auditing training