Internal Audit-Defination

The globally accepted body the IIA defines Internal Audit as an an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Investorwords, a business dictionary defines internal audit as an ongoing appraisal of the financial health of a company's operations by its own employees. Employees who carry out this function are called internal auditors. During an internal audit, internal auditors will evaluate and monitor a company's risk management, reporting, and control practices and make suggestions for improvement. Internal auditing covers not only an organization's finance function, but all the operations and systems in a firm. While internal auditors are typically accountants, this activity can also be carried out by other professionals who are well-versed with a company's functions and the relevant regulatory requirements.
Moreover, internal auditing is an independent professional service, to serve not just management but the whole organisation and its stakeholders. This means that the internal auditing customer base includes all stakeholders including employees, suppliers, customers, investors, external auditors etc.
Internal audit is a progressive division within the Resources Directorate. We provide independent assurance on the adequacy of risk management, control and governance to the Board of Directors. We undertake this by carrying a programme of audits throughout the authority, and provide advice and assistance to managers at all levels on a range of audit related matters such as risk management, internal control, corporate governance and project / programme management.
Careful analysis of the definition of Internal Audit given by IIA clearly shows two important functions of the Internal Audit mainly assurance and consulting.
The assurance role of the internal audit function mainly require the auditors to give assurance to the stakeholders around adequacy and effective functioning of risk management, control and governance processes.
The consulting roles of Internal Audit specially helps management through its technical knowledge and experience to improve the adequacy and effectiveness functioning of risk management, control and governance processes by partnering with management in designing effective system.
Normally it is found that IA put consulting role more in small organisation or organisation where risk management, control and governance roles are poor. Furthermore, if we observe the normal audit report we will found two part in the report the first part focus on assurance and recommendation part mainly focus on consulting role of internal audit.