What is internal audit ?
According to The IIA which oversees the profession of internal auditors, it is defined as 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.
Ordinarily there is no regulatory requirement on how a company must define this function and the tasks it carries out. However, The IIA develops and maintains the profession's standards, and issues practice advisories from time to time. Starting January 2004, The IIA’s standards board (IASB) became responsible for revising and updating the profession's standards.
These standards are updated on a continuous basis to reflect current risk management and governance requirements. Updates on the standards incorporate numerous comments on issues received through a worldwide solicitation and public exposure process, upon which IASB approves The IIA standards for implementation.
The IIA is a self governing professional body that includes IASB which is charged with evaluating and developing practice standards that are issued in draft form and subject to a public comment period, much like other professional standards and accounting pronouncements. The IIA standards include a code of ethics that members must follow or face disciplinary action including expulsion.
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