What's an internal audit?
submitted by Polly Esther

Schmichael

It's a bit of a misnomer, because generally the word "internal" refers to an employee of a company. In the case of an internal audit, the audit is performed by an independent consultant.

The consultant reviews business processes--in this case the accounting--and reports objectively on the findings. This process can bring to light discrepancies in reports, mismanagement of funds, embezzlement, and inefficiencies in the accounting system. An auditor my recommend changes to policy.