What is internal auditing?
The Institute of Internal Auditors (IIA) definition is: Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal auditing is an independent appraisal function established within an organization to examine and evaluate the adequacy and effectiveness of the organization’s internal control system and its overall quality of performance. Internal auditing furnishes top management with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed. Why Was Internal Auditing Established at OESC? An effective internal audit department plays a valuable role in assisting the Commission and Directors in fulfilling their responsibilities and helping the organization achieve its strategic business objectives. The Commission and the Executive Director wanted to make sure that operations throughout the Agency are reviewed at appropriate intervals to determine whether they are efficient and operated in accordance with management instructions, federal and state laws, regulations, policies, and procedures. In addition, they wanted to be certain that: • Resources are ade
The Institute of Internal Auditors defines internal auditing in this way: “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
The internal auditing process is one of critical thinking, analysis, and careful evaluation. All mechanical procedures are integrated into a larger context of thoughtful inquiry. To this end internal auditors are responsible for assessing whether operating standards are in place, acceptable and are being met. These standards are criteria to determine whether operational objectives and goals have been accomplished. All engagements are carried out with painstaking attention to the professional and ethical code of conduct (See Glossary: Code of Ethics), and include a description and analysis of internal controls. Engagement clients are selected in a number of ways, with risk being the primary basis for selection. All engagements and engagement clients appear on the Internal Audit Annual Plan prepared by your organizations CAE. The annually updated long range plan of audit activities identifies the ongoing priorities, direction, goals and objectives for internal audit in a given period. Th
