"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 more traditional concept of appraisal and that today's internal auditors often contribute to better management by providing an internal consulting resource. They also add value by promoting a wide scope for internal auditing and ensuring a high reporting level to the audit committee/the board - accords with the needs of well managed organisations.
The definition recognises that controls should be focused on mitigating risk and acknowledges the important role of the internal auditor in contributing to good governance.
Internal Auditing Role & Scope
The role of internal audit is ever-changing. The demands on all organisations to 'add-value', and to strengthen internal governance, have led to a significant shift in management expectations of internal audit role within the organisation. The internal auditor should be a person of high intellect with a regard for humanity. With these qualities, the internal auditor who arrives at unbalanced factors can offer remedial views for raising the institution or the company to a balanced state. The audit Role is a reflection of the needs and expectations of the organisation as a whole to survive and thrive at a particular phase in development.
The overall objective of internal audit is to act as a Consultant at...