Definition of Internal Auditing

Current definition: 
Ref The Institute of Internal Auditors web site at www.theiia.org

“ Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes”

Prior to the above definition which came about in 1996, auditors common understranding about internal auditing was that:

“Internal auditing is an independent appraisal activity within the organization to check the accuracy and reliability of the orgniazation’s record, promote operational efficiency, ecncourage adherence to policies, systems and procedures and to safeguard the organization’s assets”

As an audit professional  for over 30 years, I find the old definition easier to understand, besides it is more indicative of what normal internal audit activity is directed to.

The new definition apparently elevates the internal audit to a higher level, with much  important role in organization. However, judging at how common internal audits are performed today, there is a significantly wide gap between what it says it hopes to do than what are actually being done and achieved. Even among practicing internal auditors, there is an underlying question as to how we realy deliver relative to what the function is described.

To make the matter worse, the entry of external auditors professing as experts on internal auditing all the more complicates the issue.

Is internal audit really delivering what it is hope to do so? Sad to say, current practices are far from getting even closer.I believe, we need to go back to basics and re-examine what internal audit should really be doing. That should start from the very basic understanding what really is internal auditing.

Let us not continue to project what we simply hope it is if we auditors cant live up to the words, otherwise we will always be in constant struggle promoting it.

The Institute of Internal Auditors’s (IIA) Thrust of promoting internal audit profession

 The Institute of Internal Auditors (IIA) serves as the   global voice, recognized authority, acknowledged leader, chief advocate, and principal educator for the internal audit profession. It is mainly  composed of members who are or have been internal auditors.

One of IIA’s principal mission today is to promote the internal audit profesion.  why is it that the IIA is still promoting the profession after 66 years since its inception in 1941. Is it not satisfied with the way it has progressed over time or is it simply because the IIA has transformed by itself as a commercial entity rather than a professional body.

As a member of the IIA for nearly 30 years, I can say that while there is so much to recognize as its positive contrinutions to the internal audit profession, there are as much rooms for improvement in what the IIA is doing in order for it to become truly what it indicates it is.

I can come up with a lenghty account of what it is doing and what it can do to promote the Internal Audit profession, but for the time being, I would limit it to what I blelieve are the major key issues to start with:

1. De-commercialize :

 2. Get out of the “skirt” of the  big accounting firms.

3.  Strengthen communication with the corporate players and leaders and not just with the finance and audit people.

4. Do what theory says we do. Be practical and truthful with what you say you can do. do.