What is mean by internal audit?

Question

What is mean by internal audit?

Answer 1

Answer # 1) It Depends on if the Proctologist is doin' the askin'.

IRS doing the Audit?  Get lots of Vasoline, and Refer back to #1.

Answer 2

It means that an outside organisation (usually) comes in to a company to examine their systems and procedures to ensure that they comply with government legislation.  In my experenece they are particularly interested in financial sytems.

Answer 3

Well. There are broadly two kinds of audits. One is External Audit and the second is Internal Audit. Internal Audit is conducted by the institution itself by thier own auditors so that the irregularities (both financial and Procedural) could be detected before submitting the accounts of the organization to the External Audit. It also means that the irreglarities coming to light as a result of Internal Audit could be regularized in time , by effecting recoveries or fixing responsibilities on t he persons concerned, with whose failure irregulariies were committed.

Answer 4

Internal auditing is a profession and activity involved in advising organizations regarding how to better achieve their objectives. Internal auditing involves the utilization of a systematic methodology for analyzing business processes or organizational problems and recommending solutions. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. The scope of internal auditing within an organization is broad and may involve internal control topics such as the efficacy of operations, the reliability of financial reporting, deterring and investigating fraud, safeguarding assets, and compliance with laws and regulations. Internal auditing frequently involves measuring compliance with the entity's policies and procedures. However, internal auditors are not responsible for the execution of company activities; they advise management and the Board of Directors (or similar oversight body) regarding how to better execute their responsibilities. As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds. Publicly-traded United States corporations typically have an internal auditing department, led by a Chief Audit Executive ("CAE") who generally reports to the Audit Committee of the Board of Directors, with administrative reporting to the Chief Executive Officer. The profession is unregulated, though there are a number of international standard setting bodies, an example of which is the Institute of Internal Auditors ("IIA"). The IIA has established Standards for the Professional Practice of Internal Auditing and has over 150,000 members representing 165 countries, including approximately 65,000 Certified Internal Auditors.

Answer 5

What is Internal Audit?

Internal auditing is an independent, objective assurance and advisory 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.

Reporting Relationship

The Internal Audit department reports functionally to the Chair of the Finance and Audit Committee of the Board of Visitors. However, the department reports to the Executive Vice President and Chief Business Officer for the purpose of day-to-day administration of the department and its finances.

Why Audit?

In recent years, more and more decentralization of day-to-day business and economic decisions has occurred in higher education. Department Heads and Chairs are often expected to not only be specialists in their field of academic endeavor, but also managers of a small but, hopefully, growing business. Managers are responsible for maintaining an adequate system of controls over their business units and ensuring that resources are applied in the most efficient and effective ways toward the achievement of the department’s goals and objectives. These two areas are where Internal Audit can help.