Role Of Internal Audit On The Organization Outside The Finance Department

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MEMO
To: Non-accounting specialists
From: Miriam Lombe, Junior Accountant
Cc: Finance Director
Date: 15/12/2014
Subject: Role of Internal Audit
It has come to my attention that the role of internal audit is not clear to some members of the organization outside the finance department. Therefore, it was decided that a memo is written to explain clearly the role of internal audit.
Internal auditing is an independent, objective assurance and consulting function intended to add value and improve an organization’s operations. The audit function can help an organization to achieve objectives by evaluating an organizations risk management, control and governance processes to help improve them.
Internal auditors (IA) assess how well risks are being managed in an organization, how the organization is being governed and how well internal control systems and processes are working. They report their findings to senior management, highlighting and advising management where improvements in systems controls and processes are necessary.
By evaluating an organization’s risk management and assisting management in improvement of internal controls, IA’s help management to clearly show stakeholders that they are managing the organization well.
Different from external auditors, IA’s work within an organization and their work can vary depending on the business requirements. They do not only look at financial risks and statements but at a range of issues that are key to a company’s survival
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