Modern Internal Audit

Lately I read some articles & discussions on internal audit on social networking community forums. I was surprised to read narrow thoughts & understanding on concepts of internal audit & SOX. One discussion forum read "internal auditing is generally financial auditing. SOX auditing tests the internal controls whereas internal auditing validates the financial statement." Opposite to this, modern internal auditing is about adding value to organization. This is achieved by evaluating the organization's control environment, risk management, control activity & governance process & by suggesting improvements in them. Internal audit is not just about financial control testing, but it also helps implement crucial controls in all business processes & functions in an organization. Internal audit is an independent & objective approach towards ensuring: 1. Reliability & integrity of financial & operational information 2. Effectiveness & efficiency of operations 3. Safeguarding of assets 4. Compliance with laws, regulations & contracts. The above aspects should be kept in mind for every internal audit engagement.

Top Internal Audit Firms follow these principles to the core.