Also found in: Dictionary, Thesaurus, Medical, Legal, Wikipedia.
Related to Internal auditor: Certified 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.
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