Paper

Internal auditing is in reality an atavistic movement, for the embryo of the modern auditing profession emerged in bygone centuries when the auditor was a trusted employee of the master. The awakening of industry in the nineteenth century and the concomitant development of the limited liability company led the independent external audit to the fore, but the subsequent growth and increasing complexity of business have gradually turned the clock back. For reasons of cost and physical capacity alone there has been an advantageous and increasing reversion to the original type of auditor.