What is Internal Audit?
Is an internal audit done by someone inside or outside the company?
Inside the company
Why do companies have internal audits?
To ensure everything works right and rules are followed.
Who performs internal audits?
Internal Auditors - these people working inside the organization.
What is the first step in the internal audit process?
Planning the audit, which involves understanding the organization's objectives, risks and controls.
What analogy describes an internal auditor as someone acting like a referee to keep a game fair?
Auditing is like having a referee in a game, making sure everyone plays by the rules.
What is an internal audit?
It is when the internal auditors inside a company check to make sure thing are working correctly and rules are followed.
How can Internal audits help a company do better?
They identify problems and suggest improvements.
Is internal auditing only about finance?
No - it checks operations, IT systems, compliance and more.
During which phase do auditors gather evidence to assess the effectiveness of controls?
Fieldwork , where auditors collect data through interviews, documents reviews and testing.
How did one auditor explain internal audit to their child using a bike, thieves, and locks?
Just like locking your bike to prevent theft (internal control), internal audit is like a parent checking the lock to ensure it works.
Does internal audit help improve company operations or only find mistakes?
It helps BOTH - find mistakes and makes things better
Why is being independent important for internal auditors?
So they can stay unbiased and honest
Which global group set standards for internal auditors?
The Institute of Internal Auditors (IIA)
What is the purpose of the reporting phase in internal auditing?
To communicate audit findings and recommendations to management and the board.
Tommy says he has 10 cookies on paper, but you only see 2. What does the auditor do?
They ask for proof of the rest—that’s checking, because you don’t just believe what’s on paper.
This highlights the concept of reasonable assurance—getting evidence instead of just trusting.
What three main areas do internal auditors focus on?
Risk, controls and governance.
Who benefits from internal audits in a company?
EVERYONE - Management, the board and the whole company.
What type of professionals can become internal auditors?
Persons from fields like IT, Engineering, Marketing, Management, Finance and more.
What does the follow up phase ensure in the internal audit process?
That corrective actions are taken to address audit findings and recommendations.
An auditor once compared themselves to a cameraman at a race—what point does that analogy make?
The auditor captures the full picture, anticipating risks and providing insight—like a cameraman who stays ahead of runners to document the whole event.
What two qualities must internal auditors always possess to stay fair and unbiased?
Independence and objectivity
Can internal audits help stop fraud or theft?
Yes - they check controls, so fraud or theft is less likely.
What is one skill that internal auditors need?
Attention to detail
What is the purpose of internal auditing in a company?
To help the company achieve its goals by evaluating and improving its operations.
What’s an auditor’s favorite game?
Hide and seek… with receipts!