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. – Internal auditing defined by IAA
Each organization aims to achieve specific organization’s objectives with the greatest efficiency and effectiveness possible. To achieve organization’s objective owner or the boards of directors provide oversight and strategic direction.
In order to steer the organization effectively, owner or board of directors must receive timely, accurate information about the organization’s many strategic, operational, financial, and compliance risks as well as assurance that the risks are being well managed.
Each organization should carryout this exercise through their in-house internal audit team or through third party services providers regularly in order to achieve organization’s objective and improve organizations operational efficiency.