Meaning of Internal Audit

Meaning

It is an audit conducted on a continuous basis by the employees of the organization appointed specially for this purpose, to review the operations and to offer suggestions to improve the efficiency. Audit which is conducted internally, i.e., within the organisation on behalf of the management is called as Internal Audit. The person who conducts such an audit is called as Internal Auditor.

Internal auditor need not be a Chartered Accountant and need not possess the qualifications prescribed by the Companies Act. The appointment, scope of work, remuneration etc. of an internal auditor are determined by the management. 

The internal auditor works as a part of the employee and is remunerated in the form of salary by the management. Internal auditor works on a continuous basis verifies the transactions that takes place in a company and after examination submits a report to the management called as Internal Audit Report.