An overview of internal auditing and its differences from external auditing

This study presents a comprehensive overview of the internal auditing function, tracing its evolution from a traditional compliance-focused role to a modern, value-adding element within organizational governance. The research elucidates the core definitions, historical development, and expanding scope of internal auditing, emphasizing its critical role in assessing the effectiveness of risk management, control, and governance processes. It further explores the essential relationships internal audit maintains with the audit committee and senior management, the competence required of its practitioners, and the governing professional standards. A significant portion of the study is dedicated to examining the emerging applications and benefits of Artificial Intelligence (AI) in enhancing audit efficiency, reducing costs, and mitigating risks. Finally, the paper delineates the key distinctions between internal and external audit functions. The findings underscore internal auditing's strategic importance in providing assurance and improving organizational operations, highlighting its adaptability to technological advancements and evolving business complexities.

Keywords:

Internal Auditing , Corporate Governance , Risk Management , Artificial Intelligence (AI) , Internal Controls