Internal auditing is
an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.
One of the most searched phrases on this subject is “internal audit meaning.” So, what is an internal audit or what does it mean? Internal Audit is a department or organization within a company tasked with providing unbiased, independent reviews of systems, business organizations, and processes. The role of an internal audit department is to provide senior leaders and governing bodies of an organization with an objective source of information regarding the following:
- The organization’s risks
- Control Environment
- Operational Effectiveness
- Compliance with applicable laws and regulations
Internal audits help to put into practice new processes, promote
accountability, and bring value to senior management and stakeholders alike. Internal auditing often does not encompass one field, but rather many facets of business operations, like compliance, financial reporting, operations, and legal affairs.
The audits are often seen as an effective way to ensure compliance and execution with established policies. It can also help discover best practices and new synergies throughout a company.
