Importance of measuring an internal audit department

Question

Write down the importance of measuring an internal audit department?

Answer 1

Importance of Internal Auditing is illustrated below:

Internal auditing refers to an assessment act managed in a corporation as verify to the entity. Its main purpose is to monitor control in the corporation.
The work of internal auditing is determined by organization itself, and its objectives vary from those of the external auditor who is appointed to report separately.

The depth and objectives of internal auditing differ extensively and depend on the volume and structure of the body and the requirements of its administration. Usually, the significance of internal auditing can be seen through one or more of the subsequent:

i) Monitoring and implementing of enough internal control. That is the task of management that demands appropriate attention on an eternal basis. Internal auditors are normally assigned specific task by management for reviewing controls, monitoring their work and suggesting improvements for them.

ii) Inspection of operational and monetary information. This might comprise review of the means employed to determine, recognize, classify and report such information and definite inquiry in individual items and in depth testing of balances, procedures and transactions.

iii) Appraisal of the economy, efficiency and effectiveness of operations including non-financial controls.

iv) Appraisal of fulfillment of laws, rules and further external requirements and compliance with administration commands and policies.