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Garcia, Paulo Miguel June 07, 2017


What is Internal Auditing?

Internal auditing is an independent, objective assurance and consulting activity designed to add

value and improve an organization's operations. It helps an organization accomplish its objectives

by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk

management, control, and governance processes. Internal auditing is a catalyst for improving an

organization's governance, risk management and management controls by providing insight and

recommendations based on analyses and assessments of data and business processes. With

commitment to integrity and accountability, internal auditing provides value to governing

bodies and senior management as an objective source of independent advice. Professionals called

internal auditors are employed by organizations to perform the internal auditing activity.

History of Internal Auditing

The Internal Auditing profession evolved steadily with the progress of management science after

World War II. It is conceptually similar in many ways to financial auditing by public

accounting firms, quality assurance and banking compliance activities. While some of the audit

technique underlying internal auditing is derived from management consulting and public

accounting professions, the theory of internal auditing was conceived primarily by Lawrence

Sawyer (1911-2002), often referred to as "the father of modern internal auditing"; and the current

philosophy, theory and practice of modern internal auditing as defined by the International

Professional Practices Framework (IPPF) of the Institute of Internal Auditors owes much to

Sawyer's vision.

With the implementation in the United States of the Sarbanes-Oxley Act of 2002, the profession's

exposure and value was enhanced, as many internal auditors possessed the skills required to help

companies meet the requirements of the law. However, the focus by internal audit departments of
Garcia, Paulo Miguel June 07, 2017

publicly traded companies on SOX related financial policy and procedures derailed progress made

by the profession in the late 20th century toward Larry Sawyer's vision for internal audit.

Beginning in about 2010, the IIA once again began advocating for the broader role internal auditing

should play in the corporate arena, in keeping with the IPPF's philosophy.

Institute of Internal Auditors

The Institute of Internal Auditors (IIA) is an internal audit and risk management guidance-setting

body. Serving 185,000 members in nearly 190 countries, The IIA is the internal audit's largest

professional organization with global headquarters in Altamonte Springs, Fla., United States.

The stated mission of The Institute of Internal Auditors is to provide "dynamic leadership" for the

global profession of internal auditing. This includes:

Advocating and promoting the value that internal audit professionals add to their


Providing comprehensive professional education and development opportunities;

standards and other professional practice guidance; and certification programs;

Researching, disseminating, and promoting to practitioners and stakeholders knowledge

concerning internal auditing and its appropriate role in control, risk management,

and governance;

Educating practitioners and other relevant audiences on best practices in internal auditing;

Bringing together internal auditors from all countries to share information and experiences.