The internal audit is a continuous review of operations and records undertakes within the business and is normally done by specially assigned staff. It should operate independently of all the internal check and in no case should divest any one of the responsibilities placed upon him. Internal auditing is an independent appraisal activity within an organization for the review of operations as a service to management. It is managerial control which functions by measuring and evaluating the effectiveness of other controls.

To achieve its objectives the auditor has to review the following areas:

☛ Reliability and integrity of the information.

☛ Compliance with the policies, plans, procedures, laws and regulations.

☛ Safeguarding of assets.

☛ Economical and efficient use of resources.

☛ Accomplishment of established objectives and goals for operations or programs