What is internal audit?
The role of internal audit is to provide independent assurance that an organisation’s risk management, governance and internal control processes are operating effectively.
What do internal auditors do?
Internal auditors have a professional duty to provide an unbiased and objective view. They must be independent from the operations they evaluate and report to the highest level in an organisation: senior managers and governors. Typically this is the board of directors or the board of trustees, the accounting officer or the audit committee.
To be effective, the internal audit activity must have qualified, skilled and experienced people.
What is its value to the organisation?
Internal auditors deal with issues that are fundamentally important to the survival and prosperity of any organisation. Unlike external auditors, they look beyond financial risks and statements to consider wider issues such as the organisation’s reputation, growth, its impact on the environment and the way it treats its employees.
In sum, internal auditors help organisations to succeed. They do this through a combination of assurance and consulting. The assurance part of the work involves telling managers and governors how well the systems and processes designed to keep the organisation on track are working. Then, the auditors offer consulting help to improve those systems and processes where necessary.