Internal auditing is 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 (Institute of Internal Auditors).
An internal audit activity provides assurance to management and an internal audit committee that risks to an organization are understood and managed appropriately. Additionally, it serves as an in-house consultation on many areas of interest. An internal audit serves as a third-line of defense within an organization’s internal control framework. It provides independent, objective assurance and advise on activities that improve an organization’s operations and add value to the board of directors and senior management, who are positioned as a first-line of defense.