"The area of internal auditing is ripe for a wide variety of research" (Sarens G., Beelde D.I, 2004, p. 2)Internal audit is an appraisal activity which is established as a service to the organisation. The IIA defines the New Internal Auditing definition as "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." (IIA, 1999) .This definition recognises that providing assurance services to management is broader than the m ...view middle of the document...
They also review the systems established to ensure the organisation compliance with those policies, plans, procedures, statutory requirements and regulations which could have a significant impact on operations. The Internal Audit function provides independent oversight of the effectiveness of, and adherence to, the institution's organisational and procedural controls. It also oversees the effectiveness of, and adherence to, the institution's compliance and risk management policies and practices. The establishment and development of internal audit plays a vital role in the improvement of internal control and management of departments, enterprises and undertakings. When exercising control over departments the top management needs internal audit to be independent in the collection, management, allocation and utilization of administrative and operating funds. Internal audit focuses on overall supervision over the truthfulness, compliance and effectiveness to examine the truthfulness, compliance and effectiveness of revenues and expenditures of the organisation and their respective departments for the purpose of ensuring that such department's undertakings will operate in a clean and efficient manner with regards to the revenues and expenditures, examination of accounts and other relevant information of enterprises and its undertakings. In addition, such examination allows internal auditors to summarize experience, discover gaps and put forward constructive recommendations for their departments and units to improve management and internal control. They review the means of safeguarding assets and verify their existence so that the employments of these resources are economic, efficient and effective.As internal audit are set up within enterprises they are characterized by timeliness and act as a Catalyst. Internal audit can conduct timely audit under the leadership of heads of their respective departments or units. As internal auditors are employees of their respective departments, they can have easy access to information concerning internal operation and management, which allows them to gain timely understanding of production and operation activities, obtain various economic information, detect problems or symptoms of problems existing in operation and management and submit information to top management on a timely basis, so that the top management can adopt relevant measures in time to correct problems that have arisen or may arise. Thus evaluating operations to ascertain whether the results are consistent with the organisation objectives and goals and whether the operations or programs are being carried out as plannedThe independent side of internal audit examine and evaluate revenues and expenditures of the relevant operating and management activities according to state laws, regulations and relevant financial and accounting institutions for the purpose of safeguarding coalition interests. On the other hand, as they conduct audit under...
