Definition

Internal Audit

Amold W. Johnson has defined Internal Audit. “Internal Auditing is the independent appraisal activity within an organization for the review of the accounting, financial and other operations as a basis for protective and constructive service to management.” Business or undertaking of a very bug size like banking and insurance companies engage a certain set of people who conduct a kind of continuous audit during the whole of the year. They check the accounts which have been maintained by book-keepers. As a matter of fact, the nature of work of such a set of people who are called Internal Auditors is more or less the same as that of professional auditors who are appointed by the shareholders. The Internal Auditors are appointed by the Directors. The Internal Auditor checks the entries after they have been passed by the accounts clerks. He checks the accounts before the Auditor of the Company conducts the annual or six-monthly audit as the case may be. Internal audit is a device which detects any error or fraud which might have been committed while the internal check prevents the commission of an error or fraud. 

Category: Microbiology
Share it:  Cite

More from this Section

  • HeLa cells
    HeLa cells is a pure cell line of human cancer cells used for the cultivation of viruses. ...
  • Krebs cycle
    Krebs cycle is an enzyme system that converts pyruvic acid to carbon dioxide in the presence ...
  • Vacuole
    Vacuole is clear space in the cytoplasm of a cell. ...
  • Nanometer
    Nanometer is anunit of length equal to one-billionth of a meter, or 10-9 m; 1 millimicrometer. ...
  • Laminar airflow
    Laminar airflow is the flow of air currents in which streams do not intermingle; the air ...