An internal audit offers risk management and evaluates the effectiveness of a company’s internal controls, corporate governance, and accounting processes.. Internal audits provide management and board of directors with a value-added service where flaws in a process may be caught and corrected prior to external audits.
The role of the internal auditor too shifts from an examination of compliance with controls to a review of the risk management process. A pragmatic approach requires that internal audit in conjunction with management undertakes the risk assessment exercise and accordingly draws up its audit plan.
