Emerging Trends in Internal Auditing and Good Governance

Abstract

Auditing generally refers to the examination of books of accounts with relevant vouchers and documents so as to enable the Auditor to opine whether the Balance Sheet gives a true and fair view of the financial position of the organization and whether the Profit and Loss Account gives a true and fair view of its profitability. This is applicable to both Internal as well as External audits. But with passage of time and the business world getting more and more complex in nature and more and more gigantic in size, the scope and the functions of Auditors have also multiplied and become more extensive and more critical than ever before. There is no denying the fact that in comparison to External Auditor, the Internal Auditor, by the nature of his/her duties and responsibilities, happens to devote more time to the organization and remains more attached to the same. The emerging trends of the internal audit signify that the success of the governance of any organization depends upon the functioning and role of the Internal Auditor to a great extent.

This paper is a humble endeavor of the authors to analyze as to how the Internal Auditor occupies a significant place in the governance of an organization.