INTERNAL AUDIT Internal audit is an audit conducted by an internal auditor appointed by the management of the enterprises with a view

to highlighting the weak areas of the organizations. It includes examination & evaluation of various organizational activities & to produce the helping hand to the management complete their responsibilities efficiently& effectively. The institute of internal auditor has defined internal auditing as follows: “ Internal auditing is the independent appraisal activity within an organization for the review of the accounting, financial & other operation as a basis for protective & constructive service to the management. It is a type of control, which functions by measuring & evaluating the effectiveness of other types of control. It deals primarily with accounting & financial matters but it may also properly deal with matters of an operating nature.” The internal auditor audits the accounts & other relevant records daily, regularly or on periodical basis to accomplish the following requirements: 1. Internal audit may be conducted to ascertain whether all rules, regulations, policies, procedures & principles have been followed by the company or not. 2. To check whether the existing internal control system is adequate & effective & according to the size of the organization. 3. To ensure that all the assets of organization are properly safeguarded, if not, he reports the management about the drawback with suggestions. 4. To highlight the weak areas of the organization & give suggestion to strengthen them. 5. To check whether working of the organization is smooth, effective, efficient & economical.

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