pexels photo 3184407

internal audit – meaning

internal audit is defined as an independent appraisal activity within an organisation for the review of accounting, financial and other controls as a basis of service to management. It is the managerial control which functions by measuring the effectiveness of other controls. Internal auditor is an employee of the organisation and is responsible to its management. Internal auditor requires a degree of independence to function, but because he is an employee of the organisation and, invariably, takes directions from the management, his independence may be impaired.

6 thoughts on “internal audit – meaning”

  1. Pingback: Objectives of a reasonable assurance engagement. – ACCOUNTING CLASS

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: