Internal Audit 360° is the independent knowledge source for internal auditors of all levels. We bring internal audit news, analysis, insight, and ideas to forward-thinking internal auditors through our various types of content. IA 360° also provides a platform for internal auditors to share ideas and resources as we strive to aid members of the internal audit community in improving as professionals. IA 360° is also home of the Journal of Internal Audit, a quarterly periodical on advanced thinking in internal audit practices. The site is published by Risk360 Media LLC.

Contact Internal Audit 360°

About the Editor

Contributor Guidelines

Sponsorship Opportunities

Support Internal Audit 360°

Visit our sister site: Compliance Chief 360°

So, What Is Internal Audit?

According to the Institute of Internal Audit (IIA), “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.”

That is quite a mouthful, so lets see if we can bring some greater clarity to that description. In my view, internal audit is responsible for checking whether the various processes, units, and functions of an organization—like risk management, compliance, financial reporting, and many others—are working the way they are supposed to work and that they are doing what they say they do. Internal audit then reports on its findings and makes recommendations on how those processes and functions can get back on track if they are not or even work better if they are already functioning effectively.

The internal audit profession is changing very rapidly these days. (See, “The Attributes of Internal Audit that Drive Value for the Business.” Most internal audit departments are working to move beyond the traditional risk areas mostly related to finance and look at things like marketing, corporate culture, and talent management. They are doing more advisory and consulting work and helping the company run more efficiently. (See, “How Internal Audit Can Add Value by Pursuing Efficiencies.“) As more companies seek to leverage technology and analyze more data to provide assurance over internal controls, they are able to add more value in other areas.

This increasing focus on technology and automation in internal audit has also caused some hang-wringing in the profession, however. Some worry that internal audit has been slow to embrace technology and could get left on the sidelines if that failure continues. (See, “Research Finds Internal Audit Lags in Tech Adoption: Here’s Why.”) Others are concerned that automation could make internal audit irrelevant as machines and software, and developments like artificial intelligence, can do what internal auditors have done in the past. Still, forward-thinking internal audit shops have evolved and will continue to evolve and find ways to add great value in the organization by using their highly developed skills of analysis, process improvement, risk assessment, and many other attributes.