INTERNAL AUDIT IN AN ORGANIZATION 8
auditing since it is essential for the firms to carry out the risk assessment, documentation and
process walkthroughs, control assessment, testing, and reporting. Risk assessment is essential in
prioritizing and identifying areas or procedures that need audit focus and attention.
Documentation and process walkthroughs help in gaining an understanding the procedures as
they exist in the organization. Controlling assessment plays a key role in identifying gaps and
looking for ways of designing and rectifying the gaps. Testing is also important in verifying if
the controls are working.
Reporting will provide recommendations and observations to improve the procedures and
controls within the organization. Governance as also been depicted as an essential aspect that is
played by the internal audit, thus adding value to the organization. According to the Institute of
the Internal Auditors (2012, p. 14), governance of is an essential aspect of an organization, and it
is the task of the in-house audit to govern the organization. Governance of the organization by
the internal audit is achieved through the assessment of the activities carried out in the firm and
making appropriate recommendations that can help in improving or developing the process of
governance in the company. Governance is important in an organization since the aspect of
governance promotes appropriate values and ethics in the organization.
Understanding all these will help us understand whether or not Internal Audit does indeed add
value to an organization, and the discussion depicted in the paper tell us that there is a need for
internal audit in our organizations. For this reason, organizations are required to accept that
internal audit indeed add value to the organizations. The research indicates that few
organizations prefer external auditing compared to internal auditing, but the fact will remain that
internal auditing is essential for the quick growth of the organization.