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.
