Internal audit is a management control. The department reviews the effectiveness of other controls within a company.
It is part of the control systems of a company, with the aim of ensuring that other controls are working correctly.
In some regimes, it is a statutory requirement to have internal audit. In others, codes of corporate governance strongly suggest that an internal audit department is necessary.
The work of internal audit is varied – from reviewing financial controls through to checking compliance with legislation.
The department is normally under the control of a chief internal auditor who reports to the audit committee.