The internal auditing profession is undergoing a sea change in a period where cases of corporate malfeasance are emerging at a brisk pace. As the process of business is becoming complex the internal auditors are expected to play more proactive role in providing assurance services to corporates. Presently, internal auditors are facing challenges relating to financial reporting, understanding the business, approach to planning audits, information technology security and control.
Organizations
are larger, more diverse, and more difficult to control. All organizations,
whether national or global, face increasing pressures to improve
performance, operate efficiently and effectively, operate in compliance
with applicable laws and regulations, and maintain accountability
to important stakeholders. These organizations need an integrating
function to assure management and the organizational governance
structure that its operations are in control. That integrating
function is internal auditing.
Internal
auditing is an independent objective assurance and consulting
activity managed within an organization and guided by a philosophy
of adding value to improve the operations of the organization.
It assists an organization in accomplishing its objectives by
bringing a systematic and disciplined approach to evaluate and
improve the effectiveness of the organization's risk management,
control, and governance processes."
Internal
auditing is a dynamic and evolving profession that anticipates
changes in its operating environment and adapts to changes in
organizational structures, processes, and technology. There is
no "one size fits all" structure of an internal audit
function. Internal auditing as practiced today differs distinctively
from the practice ten years ago. Furthermore the profession will
continue to evolve as organizations and the demands for better
governance and control change. |
