Internal audit facts for kids

Internal auditing is like having a special team inside a company that helps make sure everything is running smoothly and safely. They check how well the company manages its risks, keeps things organized, and follows all the rules.

Think of it this way: Imagine you have a big project at school. An internal auditor would be like a helpful friend who looks at your plan, checks your progress, and gives you tips to make sure you finish on time and get a great grade. They don't do the project for you, but they help you do your best!

These special helpers are called internal auditors. They work for all kinds of organizations, like government offices, big companies, and even non-profit groups. Their main goal is to help the company reach its goals by giving honest advice and finding ways to make things better.

Internal auditors look at many different things. They check if the company's operations are working well, if its money reports are correct, and if it's following all the laws and rules. They can even help find and prevent fraud, which is when someone tries to cheat the company.

Internal auditors are not in charge of the company's daily tasks. Instead, they advise the leaders and managers on how to do their jobs better. Because they look at so many different parts of a company, internal auditors often have many different skills and backgrounds.

The Institute of Internal Auditors (IIA) is a big international group that sets the rules for internal auditing. They also offer a special test to become a Certified Internal Auditor (CIA).

What Internal Auditors Do

Internal auditors have a wide range of responsibilities to help a company succeed.

Checking for Risks

A big part of an internal auditor's job is to help the company understand and manage its risks. Risks are things that could go wrong and stop the company from reaching its goals.

For example, they might help a company figure out if there's a risk of computer systems crashing or if important information could get lost. They also help companies set up plans to deal with these risks. Internal auditors often work with other teams to make sure the company is ready for anything.

Helping Company Leaders

Internal auditors also play an important role in how a company is run, which is called corporate governance. This means making sure the company is managed fairly and honestly.

They often work closely with a special group of leaders called the audit committee. This committee helps oversee the company's money and make sure everything is done correctly. Internal auditors give them important information and suggestions to help them do their job well. They are seen as one of the key parts of good company leadership, along with the main leaders and outside checkers.

Where Internal Auditors Work

Internal auditors work in many different places. You can find them in:

• Government agencies (like city, state, or national offices)
• Companies that sell products or services (from small businesses to huge corporations)
• Non-profit organizations (like charities or foundations)

Each internal audit team is usually led by a chief audit executive (CAE). This person reports to the audit committee, which helps keep the internal audit team independent and objective.

See also

• Certified Information Systems Auditor
• Committee of Sponsoring Organizations of the Treadway Commission (COSO)
• Institute of Internal Auditors
• Operational auditing