Why Internal audit is necessary

Question

Accepted Answer

Internal audit is necessary to ensure compliance, identify risks, and improve operational efficiency.

Ensures compliance with laws, regulations, and internal policies
Identifies and mitigates risks to the organization
Improves operational efficiency and effectiveness
Provides assurance to stakeholders
Helps in detecting and preventing fraud
Evaluates the effectiveness of internal controls
Assists in decision-making and strategic planning
Enhances transparency and accountability
Supports continuous improvement and best practices
Examples: Internal audit helps in identifying financial irregularities, ensuring accurate financial reporting, evaluating the effectiveness of internal controls, and providing recommendations for process improvements.

Accepted Answer

Internal audit helps in identyfiying errores so that corrective and preventive action will taken on time.

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