Internal Audit Of An Organization

1965 Words8 Pages
The internal audits in an organization provide numbers of services that are significantly important to company management and help organization to succeed. These services include testing internal control, assessing operational risk, detecting the misstatement, and monitoring compliance with government regulation and policy. Institute of Internal Auditors (IIA) gives the latest definition of internal audit is that: Internal audit is an independent assurance and consulting activity management, aims to add value to organizations and institutions to improve operational efficiency. It takes a systematic, disciplined approach to risk management, control and governance processes to improve, and helping organisation to achieve its objectives. Unlike external auditors form outside of the organization, they provide opinions mainly associated with financial statements or risk problems on wider issues in business environment. Internal audits as an independent department resides within the organization working in partnership with appropriate authorities, having a larger coverage range than external audits in both financial and non-financial area. Internal auditors also transformed to become a respected member in management decision-making and internal control. Nowadays, more and more attention has been paid on internal auditing. Drawing the lessons from the scandal of Enron, Enron allowed an external accounting firm to take charge of company’s internal audit function, and consequently
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