An Internal Audit is an independent, objective evaluation process within an organization that helps assess the effectiveness of internal controls, risk management, governance processes, and compliance with regulations. The purpose of an internal audit is to provide assurance to the organization’s stakeholders that operations are being conducted effectively, efficiently, and in compliance with relevant laws, policies, and standards.

Internal audits are typically carried out by a team within the organization (often called the internal audit department) and are distinct from external audits, which are performed by independent third-party auditors. Internal audits focus on identifying areas of risk, inefficiencies, fraud, and ensuring internal controls are working as intended to safeguard the organization’s assets and resources.