The Institute of Internal Auditors describes the
nature of Internal Audit as "an independent appraisal activity within an organization for the review of operations as a service
to management". Webster's dictionary describes the word benefit as "something
that promotes well being".
An effective Internal Audit function should be a service to
management, which promotes the well being of the organization.
Internal Audit can be beneficial to municipalities in many ways;
Ø Provide assurance to Council and management that their sophisticated financial, management and
E.D.P. control systems are working effectively.
Ø Provide advice on controls to management when changes in operations are planned such as the introduction
or enhancement to data processing.
Ø Provide close liaison with external auditors, which will provide broader audit coverage. External
audit costs can also be reduced where external auditors can rely on internal audit work.
Ø
Provide Councilors and management with comprehensive, objective reviews of any area of municipal operations,
which will demonstrate whether operations are being performed in the most economical, efficient, and effective manner.
The type of Internal Audit which any municipality has depends on matters such as:
·
The needs of the municipality
·
Its management style
and structure
·
Skills available in
current staff or through hiring
