Factors/Situations Where A Company Would Want To Expand Its Internal Audit Department

Factors which may contribute to the growth or expansion of internal auditing in an organization are:

  1. 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
  2. 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
  3. 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.
  4. 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


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