The objective of internal auditing is to assist members of management in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed. This sample policy defines “internal auditing” as an independent appraisal activity established within an organization for the review of operations as a service to management. It is a managerial control, which functions by examining and evaluating the effectiveness of other controls.  

Use this policy to define the purpose, responsibilities and reporting structure of your internal audit department.