Discuss the need for Internal Audit as a tool for Corporate Governance in the present day organizations.

Internal Audit is an independent management function, which involves a continuous and critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of the entity including entity's strategic risk management and internal control system. An effective internal audit function can play a significant role within the corporate governance framework of a company. Over the last decade internal audit has developed and grown in importance. Efficient internal audit functions provide objective assurance/ assessments to the board (and to the audit committee) about the adequacy and effectiveness of the processes by which risks are identified and prioritised; managed, controlled, and mitigated. In most of the countries and business sectors internal audit reports professionally to an audit committee and managerially to the chief executive or chief financial officer. Internal audit is an independent and objective appraisal function; it supports senior management and the (management) board. Internal audit activities are performed in diverse legal and cultural environments; within organisations that vary in size and structure. Internal audit functions should comply with the relevant professional standards. Internal Audit is a tool of control: To measure and evaluate the effectiveness of the working of an organization To ensure that all the laws, rules and regulations governing the operations of the organization are adhered to To identify risks and also suggests remedial measures, thereby acting as a catalyst for change and action.