Internal Auditing Standards: Why They Matter
In today’s business environment, having an efficient and effective internal audit function is a true necessity. Internal auditing is among the cornerstones of effective organizational governance. Internal audit’s mission is to enhance and protect organizational value by providing stakeholders with risk-based and objective assurance, advice, and insight. Generally, under the oversight of an audit committee, internal auditors review the organization’s processes, operations, and goals, and they provide senior management and the board with the information needed to make informed decisions on critical issues. Because internal auditing is vital to good corporate health, an essential board responsibility is to ensure that the internal auditors do it well. But how can a board make sure the internal auditors serve the organization effectively? The answer lies in the International Standards for the Professional Practice of Internal Auditing (Standards). The Standards, promulgated by The IIA, are the primary mechanism for ensuring an organization’s internal auditors consistently and accurately provide essential services in a timely, cost-effective manner.
The Standards also:
- Provide a framework for performing a broad range of value-added internal auditing.
- Delineate basic principles that represent the practice of internal auditing.
- Establish the basis for the evaluation of internal audit performance.
- Foster improved organizational processes and operations.