Saturday, April 3, 2010

Internal Audit Definition

What is an Internal Audit?

An internal audit is an independent appraisal function that occurs inside an organization to examine and evaluate its core activities.

The main objective of internal auditing is to assist members of the organization in running it the most efficient way possible. Therefore, internal auditing provides decision makers with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed. The core audit objective includes promoting effective control at the most reasonable cost.

However, a corporation may contract an external auditor or firm to conduct its internal audit function. This is especially true in the post Sarbanes-Oxley world where independence is at a high premium,

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The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.