Reviewing the means of safeguarding assets and, as appropriate, verifying the existence of such assets. Appraising the economy and efficiency with which resources are employed. Reviewing operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned. The charter should make clear the purposes of the internal auditing department, specify the unrestricted scope of its work, and declare that auditors are to have no authority or responsibility for the activities they audit. Inc. This responsibility includes coordinating internal audit activities with others so as to best achieve the audit objectives and the objectives of the organization.
Internal auditors are independent when they can carry out their work freely and objectively.
Independence permits internal auditors to render the impartial and unbiased judgments essential to the proper conduct of audits. It is achieved through organizational status and objectivity. Organizational status should be sufficient to assure a broad range of audit coverage, and adequate consideration of and effective action on audit findings and recommendations. Objectivity requires that internal auditors have an independent mental attitude, and an honest belief in their work product. Drafting procedures, designing, installing, and operating systems, are not audit functions.