Essay Internal Audits

Internal Audits

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Accounting
Definition, purpose, role of auditor, compared to external audit, future.

Many companies across the United States employ an internal audit staff, with some departments numbering in the hundreds. The companies typically established the functions in the 1970s to improve their internal financial control environment. Since then, advances in information technology have meant more reliable control systems. As a result, time-consuming, routine testing often is less beneficial and often unnecessary. Nonetheless, internal auditors remain a critical part of many organizations, although their role is changing from merely appraising the company’s internal procedures to being more aggressive in their approach to their responsibilities. This research considers the historical role of the internal auditor, how internal audits differ from external audits, and considers the future direction of the internal audit …