ABSTRACT
The internal audit department can be any division, department, team of consultants, or other practitioners that provide independent, objective assurance, and consulting services. To ratify and preserve its independence, internal audit departments should be "off-to-the-side" of their organization's organizational chart. During the 1990s, large accounting firms developed and expanded their internal audit units and offered their services in the marketplace. Many in-house internal audit departments experience difficulties obtaining sufficient, and appropriately qualified auditors to meet their annual plans. Audit Committees must be actively engaged in directing the organization's internal audit function. They should approve: The internal audit charter, the risk-based audit plan, the budget and resource plan, the appointment and removal of the chief audit executive and the compensation of the chief audit executive. The internal audit department should be free of operational responsibilities to preserve its independence and objectivity.
