Scope and Objectives of Internal AuditScope and Objectives of Internal Audit

Scope and Objectives of Internal Audit

8 The scope and objectives of internal audit vary widely and depend on the size and structure of the entity and the requirements of those charged with governance and management. Ordinarily, internal audit activities include one or more of the following:

• Monitoring of internal control. The establishment of adequate internal control is a responsibility of those charged with governance and management which demands proper attention on a continuous basis. Internal audit is ordinarily assigned specific responsibility by those charged with governance for reviewing controls, monitoring their operation and recommending improvements thereto.
• Examination of financial and operating information. This may include review of the means used to identify, measure, classify and report such information and specific enquiry into individual items including detailed testing of transactions, balances and procedures.
• Review of the economy, efficiency and effectiveness of operations including non-financial controls of an entity.
• Review of compliance with laws, regulations and other external requirements and with management policies and directives and other internal requirements.