internal audit

  

Definition

Frequent or ongoing audit conducted by a firm's own (as opposed to independent) accountants to (1) monitor operating results, (2) verify financial records, (3) evaluate internal controls, (4) assist with increasing efficiency and effectiveness of operations and, (5) to detect fraud. Internal audit can identify control problems, and aims at correcting lapses before they are discovered during an external audit. Although the internal auditors are the firm's employees, they normally do not audit themselves or their own departments, but entrust it usually to independent auditors.

Use internal audit in a sentence

  • Each month, the company will assign a different manager to perform an internal audit on each department in order to maintain consistent workflow.

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  • Alot of companys will do thier own internal audit at least once or twice in a physial year so they will be ready when an outside audit comes in to check them.

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  • You need to make sure that you do an internal audit so that you know that everything in your business is ok.

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