Ch 1: Internal Auditing Overview

About This Chapter

Review basic information about internal auditing processes and practices using the detailed lessons in this chapter. These lessons can help you study for an accounting class test or prepare for a professional certification exam.

Internal Auditing Overview - Chapter Summary

From internal auditing standards to the professional code of ethics, this chapter covers essential information related to internal auditing. You'll go over why internal auditing is done, types of internal audits and how objectivity is maintained throughout the audit process. After you complete your review of this chapter, you should be able to do the following:

  • Define the standards of an internal audit
  • Identify the types of internal audits
  • Detail the code of ethics and professional practices set by the Institute of Internal Auditors
  • Explain the purpose of an internal audit
  • Discuss the independence of internal and external auditors
  • Point out how to foster organizational independence with internal audits
  • Understand audit objectivity and what might impair this objectivity
  • Assess and ensure objectivity in internal audits

The lessons are accessible from any device at all times, making it simple and convenient to review this material. Determine how much you have learned and whether you need to review any topics further by taking the short self-assessment quizzes accompanying each lesson. If you need assistance, you can contact our instructors through the Dashboard.

6 Lessons in Chapter 1: Internal Auditing Overview
Internal Auditing: Definition & Standards

1. Internal Auditing: Definition & Standards

If you work in 'corporate America,' you may have heard the infamous phrase, 'We're here from internal audit and we're here to help.' Even if you haven't, in this lesson we'll discuss what an internal audit is and the standards auditors must follow.

Types of Internal Audits

2. Types of Internal Audits

Internal audits are conducted for different reasons and with varying objectives. In this lesson, we will discuss four of the most common types of internal audits and provide examples for each.

IIA Code of Ethics: Principles & Rules of Conduct

3. IIA Code of Ethics: Principles & Rules of Conduct

As the international professional organization for auditors, the Institute of Internal Auditors (IIA) develops standards for the auditing industry. In this lesson, we will introduce and discuss the Code of Ethics found in those standards.

Internal Audit Activity: Purpose, Authority & Responsibility

4. Internal Audit Activity: Purpose, Authority & Responsibility

Sometimes, employees worry when 'the auditors' come to visit. But if audit isn't seen as a valuable function, why do companies fund an audit department. In this lesson, we'll discuss the purpose, authority, and responsibility of internal audit.

Fostering Organizational Independence During an Internal Audit

5. Fostering Organizational Independence During an Internal Audit

The second topic addressed in the IIA's audit standards is organizational independence. In this lesson, we'll discuss why this independence is so important, as well as how this independence can be developed and encouraged.

Audit Objectivity: Definition & Impairments

6. Audit Objectivity: Definition & Impairments

Two characteristics are often cited as the most important for auditors: independence and objectivity. In this lesson, we'll define objectivity, discuss why it is so critical, and give examples of how it might be jeopardized.

Final Exam
Certified Internal Auditor (CIA): Exam Prep & Study Guide
This course currently has no final exam ready
Chapter Exam

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