Internal Audit

Question 1

What is internal audit?

Answer 1

An independent appraisal activity established within an organisation. UK GAAP stresses the need for good internal control, but does NOT require it.

Question 2

Independence of internal audit

Answer 2

Internal auditors should have no involvement in the operational activities of the company, and should report to the audit committee or board of directors.

Question 3

What are the roles of internal audit?

Answer 3

Monitoring control systems and risk, examining financial information, special investigations, and reviewing compliance and efficiency of operations.