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 ?
This is nothing but negligence as the Punjab government has failed to ensure that these companies carry out an internal audit. As the funds given through SDA are not audited, it is natural to fear that irregularities will be found if an audit is carried out.
Caption: Jacob Flournoy established the internal audit department for the University of Arkansas System.
"As risks increase, internal audit's coverage of risk and performance in emerging areas is critical, which provides internal audit with an ideal opportunity to demonstrate the value of the evolving profession.
Requires the Office of Internal Auditing to conduct internal audits according to an annual plan and to make reports of those audits
Most large public and private organizations have a formal internal audit function that provides independent and objective assurance, compliance, and consulting-type activities to improve the organization's operations.
The evaluation of an entity's (along with the auditors') exposure to risk from loss or injury, the structuring and planning of the internal audit function, and the recruiting and development of staff are covered as well.
An Expert Advisory Group (EAG) consisting of retired experts from administration, accounts and audit was constituted by the Ministry of Rural Development for recommending measures aimed at expanding and deepening the application of the internal audit function across programmes at all levels of implementation.
Phillips helps managers, quality professionals, internal audit coordinators, and internal auditors implement a practical internal audit process that meets the requirements of ISO 9001:2015 while adding significant, measurable value to the organization.
The survey considered two types of staffing arrangements within the CPA firm: using different personnel or using the same personnel for external and internal audits. The data shown in the Exhibit indicate that these two staffing arrangements were perceived quite differently.
Just how objective are auditors that perform both external and internal audits for clients?
Four federal banking agencies issued a policy statement on internal audits, including information on outsourcing the internal audit function.