MynaKraven
Internal
Auditing
Internal
Auditing is an independent,
objective assurance and consulting 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.
Managers are responsible for designing control
processes that provide reasonable assurance the following business objectives
can be achieved:
Effective and
efficient operations
Compliance with laws
and regulations
Reliable financial
reporting
Internal auditors evaluate how well the
control processes designed by managers function, and therefore the extent to
which managers can have reasonable assurance business objectives will be
realized. The internal audit function reports to top management and normally
has direct communication with the audit committee and the board of directors.
Because of their expertise and thorough knowledge of operations, internal
auditors often fulfill a consulting role to top management.
Internal auditors should be independent of the
activities they audit. Internal auditors are independent when they can carry
out their work freely and objectively. Independence permits internal auditors
to render the impartial and unbiased judgments essential to the proper conduct
of audits. It is achieved through organizational status and objectivity.