Internal auditor

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Related to Internal auditor: Certified Internal Auditor

Internal auditor

An employee of a company who analyzes the company's accounting records to ensure that the company is following and complying with all regulations.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Internal Auditor

A person or persons employed by a company who review their own company's business activities to identify inefficiencies, reduce costs, and otherwise achieve organizational objectives. Internal auditors 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Despite the impotence of internal auditors satisfaction especially satisfaction with pay as an essential factors which may affect their performance as well as affect IA effectiveness, the impact of internal auditors' pay satisfaction on the IA effectiveness have not been examined by prior studies.
"Continuous Auditing: An Effective Tool for Internal Auditors".
The materiality or the misstatement threshold used by the external auditor differs from the one used by the internal auditors. Ex: as per the table below the materiality of the external audit firm is $21,945, therefore misstatements that fall below this amount separately or aggregately are considered immaterial.
c) The internal auditor may consider becoming a whistle-blower.
"These days, internal auditors are also active in riskmanagement assessments and identify the key controls in place and test those controls to make sure they are working properly ...
* The internal auditor must have adequate knowledge, skills and assets necessary for the performance of auditing work.
The second core characteristic is that the internal auditor's independence is guaranteed in determining the areas to audit; the scope of the audit; the nature, timing, and extent of audit tests; and the reporting of background information, findings, and conclusions.
Academic research in internal audit provides best practices and pertinent information for external and internal auditors. Below, we summarize recent internal audit research from leading academic accounting journals.
In "The Effects of Internal Audit Report Disclosure on Investor Confidence and Investment Decisions," Holt and DeZoort investigated whether increased internal auditor transparency affected investor confidence in the reliability of financial reporting and investing-recommendation decisions (International Journal of Auditing, April 2009, pp.
This special program will feature course director and lecturer Mary Jane Rosales, former president of The Institute of Internal Auditors in the Philippines.

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