Internal auditors are company employees who continuously evaluate the effectiveness of the company’s internal control systems. Large companies often assign independent internal verification to internal auditors. They review the activities of departments and individuals to determine whether prescribed internal controls are being followed. They also recommend improvements when needed. In fact, most fraud is discovered by the company through internal mechanisms such as existing internal controls and internal audits. For example, the alleged fraud at WorldCom, involving billions of dollars was uncovered by an internal auditor.
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