What is internal audit?
What does the internal audit team do?
Internal audit is a function, typically within a public company, that is responsible for evaluating the design and operating effective of a company’s internal controls. The procedures performed by internal audit are very similar to what the external auditor would perform, however, internal audit is not considered to be independent.
Does the internal audit team assess financial statements?
No, the internal audit team would not assess whether the financial statements are free from material misstatement. Again, internal audit focuses primarily on the company’s internal controls. Many of these controls are related to financial reporting, but they may also related to other aspects of the business.
What is the benefit of having an internal audit team?
The benefit of having an internal audit team is that they can help identify issues before the external audit team does. If the external audit team finds issues with the company’s internal control framework, those issues might have to be reported to the public in the company’s public financial statements.
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