Importance Of Internal Auditing

Internal auditing is a function that is responsible for performing financial and non-financial audits within a wide range of areas of a business, as directed by the annual audit plan. It operates independently from other departments and reports directly to the audit committee, reside within an organization (i.e. they are company employees). Internal audit look at key risks facing the business and what is being done to manage those risks effectively, to help the organization achieve its objectives.

Internal auditors evaluate whether policies and procedures are being followed; monitor compliance with laws and regulations; ensure accuracy of records; suggest ways to reduce costs, improve processes, manage risks, and enhance revenues; investigate

The main purpose of the IIA Standards is to define basic principles that represent the practice of internal auditing; provide a framework for performing and promoting appropriate ethics and values within the organization; ensuring effective organizational performance management and accountability; communicating risk and control information to appropriate areas of the organization; and, coordinating the activities of and communicating information among the board, external and internal auditors, and

Integrity refers to behaving consistently and maintaining the appearance of what is factual. In order to do that, the accountants must remain honest to their customers, even when the information they are sharing is negative. The accountant needs to respect the privacy of the customer and keep the information confidential. The only exception to confidentiality is when required by law to share the information. The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment where as for external auditors, open-mindedness is an essential ingredient of integrity, which means that accountant should be open to the reporting needs of various interest groups and not just the needs of those with economic