Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps evaluate and improve risk management, control, and governance processes. Internal audits are important for monitoring business assets, verifying compliance with policies and procedures, and providing objective insight, improving efficiency, evaluating risks, assessing controls, and ensuring legal compliance. The main types of internal audits are compliance, environmental, information technology, operational, and performance audits. The internal audit process involves planning, fieldwork, reporting, and follow-up phases.

1. INTERNAL AUDIT
S.M. Towhidul Islam
181-35-2435
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2. What Is Internal Audit ?
 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.

3. Why Internal Audit ?
 Internal auditing programs are critical for monitoring and assuring that all of our business assets have been properly secured and
safeguarded from threats. It is also important for verifying that our business processes reflect your documented policies and
procedures.
Let’s take a look at five reasons why internal auditing is important and its purpose in keeping our organization compliant with the
common frameworks and regulations.
 Provides objective insight
 Improves efficiency of operations
 Evaluates risks and protects assets
 Assesses organizational controls
 Ensures legal compliance

4. What are the Types of Internal Audits?
 Some of these key areas include compliance, environmental, information technology, operational and performance audits.
 Compliance Audits evaluate compliance with applicable laws, regulations, policies and procedures. Some of these regulations may have a
significant impact on the company’s financial well-being.
 Environmental Audits assess the impact of a company’s operations on the environment. They may also assess the company’s compliance
with environmental laws and regulations.
 Information Technology Audits may evaluate information systems and the underlying infrastructure to ensure the accuracy of their
processing, the security and confidential customer information or intellectual property.
 Operational Audits assess the organization’s control mechanisms for their overall efficiency and reliability.
 Performance Audits evaluate whether the organization is meeting the metrics set by management in order to achieve the goals and
objectives set forth by the Board of Directors.

5. Internal Audit process
 An internal audit should have four general phases of activities—Planning, Fieldwork,
Reporting, and Follow-up. The following provides a brief synopsis of each phase.
 Planning – During the planning process, the internal audit team will define the scope and objectives,
review guidance relevant to audit.
 Fieldwork – Fieldwork is the actual act of auditing. Throughout this phase, the audit team will execute the
audit plan. This usually includes interviewing key personnel to confirm an understanding of the process
and controls.
 Reporting – As you might guess, internal audit will draft the audit report during the reporting phase. The
report should be written clearly and succinctly to avoid misinterpretation and to encourage the intended
audience to actually read and understand the report.
 Follow-up – The final stage is an important one that is often overlooked and neglected. Following up is
critical to ensure that the recommendations have been implemented to address the findings identified.

6. Conclusion
 I hope this has helped us to better understand the role of internal audit, anticipate the process in
our next internal audit, and avoid the potential pitfalls that can derail an internal audit.

7. THANK YOU