Internal Audits

How can an internal audit benefit  a report reader?

Another form of internal assurance is provided by internal audit departments within reporting organizations.  Internal auditors usually base their opinions (also called attestation) on professional standards.  To provide an opinion on or to attest to the accuracy of the data, internal auditors use procedures that are similar to those that an independent third party external to the organization (external auditor) would use.

What are the qualities of an internal auditor?

  • auditors are employees of an organization, but separate from management;
  • they are perceived as having less objectivity than external auditors; therefore, less credible;
  • they are helpful to an external assurer by completing preliminary preparation work before an external review is undertaken.

Learn more about internal auditors and their roles:

What does an internal auditor do? What are the results of internal audits?
  • Sample data to determine their accuracy.
  • Ask questions about how the data are collected and compiled.
  • Analyze the data to determine its reasonableness.
  • Indentify inefficiencies.
  • Recognize warning signs for potential problems.
  • Make suggestions for meeting targets.