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 ?
With this retreat from the original purpose of internal auditing, it should come as no surprise that there was a rash of recent corporate fraud of such a magnitude as to bankrupt billion-dollar multinational corporations.
* Define the scope of internal auditing activities.
Part One, "Foundations of Internal Auditing, provides an introduction to the field and internal control.
There are significant differences in reporting formats used in internal auditing; the auditor and the company manager should decide on a format that fits the company.
But internal auditing's body of knowledge has been maturing over time.
the internal auditing department that are material to the
The IIA's definition of internal auditing reflects the broad duties of internal auditors in their organizations.
Its reports, charts, and graphs provide baseline levels from which to benchmark and evaluate an internal auditing department's performance.
Nearly every business can effectively use internal auditing as part of a comprehensive internal control structure.
Their work, published in the February 2015 issue of Auditing: A Journal of Practice & Theory, examines the impact of the internal audit function on timely reporting by developing a proxy for the internal audit function to measure the quality and volume of an organization's internal auditing contributions.
"Internal auditing in the Middle East and North Africa: A literature review." Journal of International Accounting, Auditing and Taxation 26,.
Tribune News Network Doha The Institute of Internal Auditors Qatar chapter held a two-day training recently in Arabic on International Standards for Internal Auditing in the course titled IPPF Standards: Mastering the Principles.

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