Importance Of Internal Audit

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Internal auditing is an activity intended to add value, also improve an organization's operations. The activity of the internal audit is independent, objective assurance, and consulting having an independent and objective function that challenges management's assumptions in a healthy way. To assess and improve the effectiveness of risk management¬, control, and governance processes, a methodical, disciplined approach is brought for an organization with help of internal audit to achieve its objectives.
The governance of an organization, the management of the risk, and control of management are improved by the internal auditing for the providence of understanding and recommendations, based on analyzing and assessing and data and business processing,
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While they do look at financial risk, they also look at strategic risk, fraud risk, and operational risk. Etc... Those types that are important to an organization. Strategic and operational decisions are made with respect to business practices and how organization is holding itself out there to its customers and to its business partners.
The execution of company activities is not the responsibility of internal auditors. They direct management and the board of directors (BOD) or similar oversight body regarding a better execution of their responsibilities. The internal auditor’s broad scope of involvement may result in having a variety of higher educational and professional
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An audit is performed by an external auditor. This audit should be in accordance with specific laws or roles of the financial statements of a company, government entity, other legal entity or organization, and is independent of the entity being audited. They’re very narrow in scope of looking at financial risks and providing attestations over the accuracy of those financial statements. internal auditors on the other hand has a much broader scope they're more forward-looking they look at things like the adequacy of design of their internal processes as well as the effectiveness of those
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