Internal audit is concerned with an evaluation of both internal control as well as the quality of actual performance. In view of the above statement, explain the scope of internal audit.

Scope of Internal Audit: The Institute of Internal Auditors defines scope of internal auditing as 'The examination and evaluation of the adequacy and effectiveness of organization's system of internal control and the quality of actual performance'. Accordingly, internal audit involves five areas of operation (scope) which are as follows: Reliability and Integrity of Financial and Operating Information: - Internal Auditors should review the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such information. Economical and Efficient Use of Resources: - Internal Auditor should ensure the economic and efficient use of resources available. Compliance with Laws, Policies, Plans, Procedures, and Regulations: - Internal Auditor should review the systems established to ensure compliance with those policies, plans and procedures, law and regulations which could have a significant impact on operations and should determine whether the organization is in compliance thereof. Accomplishment of Established Goals for Operations: - Internal Auditor should review operations, programmes to ascertain whether results are consistent with established objectives and goals and whether the operations or programmes are being carried out as planned. Safeguarding of Assets: - Internal Auditor should verify the existence of assets and should review means of safeguarding assets.