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 reviews the reliability and integrity of information, compliance with policies and regulations, the safeguarding of assets, the economical and efficient use of resources, and established operations goals and objectives. Internal audits encompass financial activities and operations including systems, production, engineering, marketing, and human resources.
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A look at today's internal audit profession reveals a process that brings more value to the organization than ever before. For instance, internal auditors now play a vital role in steering committees and strategic planning groups throughout the organization and help raise awareness of risks before they become problems. In essence, today's internal auditors and the services they provide are critical to the very survival of the organization.
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The challenges of the profession reflect the challenges faced by businesses - global competition, downsizing, re-engineering, security risks of advanced technology, and the effects of the economy. Internal auditors also consider such issues as ethical behavior, efficiency of systems, and compliance with regulations.
Internal auditors respond to these challenges by making recommendations to increase efficiency and implement the latest techniques for ensuring control. They may also suggest money-saving changes and propose cost-effective strategies to minimize risk.
Internal auditors also play a vital role in ensuring that an organization is efficiently run, morally sound, technologically advanced, cognizant of the environment and other areas of concern, and safe from unnecessary risk.
Internal auditing's increasingly diverse and challenging roles relative to internal control and governance make the internal audit profession an inviting career option. Successful individuals in today's broad arena of the internal audit profession are committed to the task of continually improving organization performance. Working in partnership with management, internal auditors can provide a wide assessment of the risks and implications of audit findings and ultimately make a tremendous difference in the success of an organization.
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