Define internal audit. What are the main aspects of internal auditing?

Internal audit 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. The main aspects of internal auditing are: Review, appraisal and evaluation of the soundness, adequacy and application of financial, accounting and other operating controls. Ascertaining the adequacy and reliability of management information and control systems. Ascertaining the achievement of management objectives and compliance with established plans, policies and procedures. Ensuring proper safeguards for assets - their utilization and accounting thereof. Detection and prevention of fraud and error. Ascertaining the integrity of management data in an organisation. Identifying the areas of cost reduction, coupled with increased production, improved productivity and improved systems. Ascertaining the quality of performance and undertaking 'value for money' exercises. Compliance with statutory laws and rules including adherence to the Companies (Auditors' Report) Order to avoid adverse comments from the statutory auditors. Undertaking special reviews and assignments directed by management to ensure economical and efficient use of resources. To provide for a channel of communicating new ideas to the top management.