An internal audit offers risk management and evaluates the
effectiveness of many different aspects of the company. Types of internal audits include financial, operational,
compliance, environmental, IT, or for a very specific purpose.
Internal audits provide management and the board of
directors with a value-added service where flaws in a process may be caught and
corrected prior to external audits. Similar
to external audits, internal audits are conducted through planning, auditing,
reporting, and monitoring steps.
Internal audits may enhance the efficiency of operations,
motivate employees to adhere to company policy, and allow management to explore
specific areas of its operations.