The role of internal audit is to provide independent assurance that an organization’s risk management, governance and internal control processes are operating effectively. The scope and objective of internal auditing vary widely and depend on the size and structure of the entity and the requirements of its management.
Ordinarily, internal auditing activities include on or more of the following:
- Monitoring of internal controls established by the management and recommending improvements thereto, if any.
- Examination of financial transactions and operating information
- Review of the economy, efficiency and effectiveness of operations including non financial controls of an entity.
- Review of compliance with laws, regulation, other external requirements and with internal policies of the organization.