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Internal Audit

Internal auditing is a consulting activity designed to add value to and improve an organization’s operations. It provides insight and recommendations based on analyses and assessments of data and business processes and provides value to governing bodies and senior management as an objective source of independent advice.

Internal auditors advise management and the Board of Directors (or similar bodies) regarding how to better execute their responsibilities.

Role in internal control

The internal auditing activity is directed at evaluating internal control and is designed in achieving the following objectives:

Role in corporate governance

A primary focus area of internal auditing is helping the Audit Committee or the Board of Directors (or equivalent) perform its responsibilities effectively by:

Internal audit execution

A typical Internal Audit Assignment involves the following steps:

Add value

The end goal of any Internal Audit assignment is to add value to the organization.

While identifying these defects and noncompliance remains key to the audit function, auditors add value also by identifying all risks to which the client is exposed, as well as ways the client can operate more efficiently and effectively in pursuing its objectives.

Areas to focus on

It’s important to let audit clients know what they can expect during an audit.

It’s imperative to build a knowledge base before you meet with a process owner by:



Use discretion when deciding what to include, and how to cover it.

Auditor can first check his or her understanding of the issue and ask about mitigating circumstances that may have been overlooked.

Discussing the findings and proposed recommendations with the persons involved will ensure that nothing has been overlooked.

 Internal audit reports

Internal auditors’ reports, at the end of each audit, will include:


Presented by Marion Caruana

Date: 7th October 2019