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Internal Audit Definition

June 30, 2017

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Term Definition
An internal audit is a procedure done to assess the operations of a business. Operations can include evaluation of financial reporting and analysis, risk management, employee training, and adherence to regulations.  Internal means the audit is completed by employees or members within the business.

Extended Definition
An audit evaluates the health of a business by researching records and analyzing the information they provide.  An internal audit is completed by someone within the company being audited such as a member or employee.  The person doing the audit is called an Internal Auditor.  The purpose of an internal audit is to inspect documents and procedures, to verify the accuracy and accountability of business operations, and to provide recommendations on ways to improve operations.

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