Factors which may contribute to the growth or expansion of internal auditing in an organization are:
- Increased size of business has brought a need for more sophisticated internal control systems which need to be constantly reviewed for adequacy and for correct operation
- Use of computers for data processing tends to mean that individual security and supervision of transactions no longer occur. This means that a department is needed to ensure that continuing proper operation of other controls over transactions
- Increased sophistication of management techniques requires more accurate management accounts and reports, this requires extra control over the accounting records which the internal audit department can ensure.
- Management like the directors require an efficient internal audit department so as to help the external auditors to cut down on their works and so reduce the external audit fees
|