Internal audit is the abbreviation of internal audit. Sawyer, the father of internal audit, defines internal audit as an independent evaluation of various businesses and controls in an organization to determine whether it follows recognized policies and procedures, conforms to laws and standards, uses resources effectively and economically, and achieves organizational goals.

Almost every enterprise can benefit from the internal audit function, but for small and medium-sized enterprises, it is difficult to recruit top talents by setting up an internal audit department with only one or two people, and it is also impossible to establish enough expert opinion libraries.

In the latest definition of internal audit, the Institute of Internal Auditors defines internal audit as: "Internal audit is an independent and objective certification and consulting service, and its goal is to increase value and improve the operation of the organization. It evaluates and improves the effectiveness of risk management, control and governance processes through a set of systematic and standardized methods to help organizations achieve their goals. "

Principles and concepts of internal audit;

The old definition of internal audit by the International Institute of Internal Auditors is reflected in its statement on internal audit responsibility (revised version 1990): "Internal audit is an independent evaluation function established within an organization, with the purpose of inspecting and evaluating its activities and serving the organization. It should provide analysis, evaluation, suggestions, advice and information on inspection activities to assist members of the organization to effectively perform their duties. "

In the traditional concept, "independence" is an important feature of internal audit and is also considered as an important requirement to ensure the effectiveness of internal audit. However, in essence, objectivity is a more fundamental and extensive concept. In the process of drafting the new definition, the steering group did not use the concept of "independence" at first, nor did it intend to define it. They believe that the broad meaning of "objectivity" is a remarkable feature of the internal audit profession.