What is internal auditing?
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.
Performed by professionals with an in-depth understanding of the business culture, systems, and processes, the internal audit activity provides assurance that internal controls in place are adequate to mitigate the risks, governance processes are effective and efficient, and organizational goals and objectives are met. The Institute of Internal Auditors (IIA) has developed the globally accepted definition of internal auditing, as follows: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.Independence is established by the organizational and reporting structure. Objectivity is achieved by an appropriate mind-set. The internal audit activity evaluates risk exposures relating to the organization’s governan
The Institute of Internal Auditors defines internal auditing as “an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.” Audits at Illinois State are conducted in accordance with the Institute’s Standards for the Professional Practice of Internal Auditing by a staff of three professionals reporting to the President.
Internal audit programs were created to help address management’s needs. Internal audit programs report to management rather than to owners as external auditors typically do. As resources shrink in state government, internal audit program staff are increasingly called upon to provide management with information needed for organizational re-engineering and to appraise the organization’s economy and efficiency of operations. The Institute of Internal Auditors has adopted the following definition of internal auditing: “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 audit programs review the reliability and integrity of information, compliance with policies and regulations, the safeguarding o
