Internal auditing is an independent, objective assurance and consulting activity

Global IIA has set out the formal definition of internal auditing in its International Professional Practices Framework. In summary, it says:

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

What is the role of Internal Audit?

The Institute of Internal Auditors (IIA) defines Internal Auditing as:

“An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. The internal audit activity 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.”

Consistent with its mission, the Internal Audit Department provides management with information, appraisals, recommendations, and counsel regarding the activities examined and other significant issues.

The department executes an approved audit plan and will perform the following tasks in accordance with its overall strategy:

• Verify the existence of assets and recommend proper safeguards for their protection;
• Evaluate the adequacy of the system of internal controls;
• Recommend improvements in controls;
• Assess compliance with policies and procedures and sound business practices;
• Assess compliance with state and federal laws and contractual obligations.
• Review operations/programs to ascertain whether results are consistent with established objectives and whether the operations/programs are being carried out as planned;
• Investigate reported occurrences of fraud, embezzlement, theft, waste, etc.

Independence is essential to the effectiveness of the internal audit function. In carrying out the duties and responsibilities, the Director of Internal Audit will issue reports to the Vice President and General Counsel in charge of the internal audit function, Senior Vice President, and the Vice President concerned. The Director of Internal Audit will meet with the Finance and Audit Committee of the Board of Trustees periodically to report the plans for audit activity, the results of audit activity, and to provide any other information required. The Director of Internal Audit has direct access to the President and the Board should matters of immediate significance arise which demand such attention.

The purpose of the Standards is to delineate basic principles that represent the practice of internal auditing. Provide a framework for performing and promoting a broad range of value-added internal auditing. Establish the basis for the evaluation of internal audit performance. Foster improved organizational processes and operations.

Attribute Standards: Purpose, Authority, and Responsibility, Independence and objectivity, proficiencyand due professional care, and quality assurance and improvement program.

Performance Standards: Managing the internal audit activity, Nature of Work, engagement planning, performing the engagement, communicating results, monitoring progress, and communicating senior management's Acceptance of Risks.

About 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.

Performed by professionals with an in-depth understanding of the business culture, systems, and processes, the internal audit activity provides assurance that internal controls in place are adequate to mitigate the risks, governance processes are effective and efficient, and organizational goals and objectives are met.

Evaluating emerging technologies. Analyzing opportunities. Examining global issues. Assessing risks, controls, ethics, quality, economy, and efficiency. Assuring that controls in place are adequate to mitigate the risks. Communicating information and opinions with clarity and accuracy. Such diversity gives internal auditors a broad perspective on the organization. And that, in turn, makes internal auditors a valuable resource to executive management and boards of directors in accomplishing overall goals and objectives, as well as in strengthening internal controls and organizational governance.

Seems like a lot to ask from one resource? Maybe for some, but for internal auditors — it’s all in a day’s work.

Definition of Internal Auditing

According to the Definition of Internal Auditing in The IIA’s International Professional Practices Framework (IPPF), 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.

*lifted from globaliia.org website

What is the objective of an internal audit?

Is internal audit an independent appraisal activity?

What is independent internal audit?

What is independent objective assurance?