Question

DQ1. According to the Institute of Internal Auditors, '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.! Using this definition, explain what you understand by Internal Auditing. You should discuss various terms in the definition and explain what you understand.

Answer 1

Internal audit is to provide independent assurance to organization's risk,management and governance.

Facilitating the independent nature of internal audit

• Internal auditors are the independent people who provide an independent objective and constructive view.
• Internal auditing is an independent acitivity which adds up value to the organization's operations.
• Independent nature of internal auditing inculdes the scope in which the organiztion's risk and mangement operations.
• The key to organiztion's success is to manage the risks effictively.
• Independent nature of internal auditing department helps in the growth and development of the organization.