The internal analysis of an organization’s resources is the final stage of the auditing process. It creates the information and analysis necessary for an organization to identify the key assets and competencies upon which a strategic position can be built. The chapter explores the nature of organizational assets, competencies and capabilities. The auditing process used to identify these assets and competencies includes the elements of an innovation audit. The use of various auditing tools to facilitate this process, in particular the portfolio models and the SWOT analysis, are also covered.