The internal audit consists in the examination of the body of activities carried out by a company in view of providing an independent valuation of risk management, control and the managing procedures thereof.
It may be exercised by persons within the company, but it may also be outsourced to a company/person which must be specialized and acknowledged by the Chamber of Financial Auditors of Romania.
The objectives of the internal audit are:
• checking if the activity of the organization is in line with the policies, programs and management thereof, according to law;
• valuing the adequacy of financial and non-financial controls ordered by the management of the economic entity, and if they are applied and to what degree, in order to enhance the efficiency of the organization’s activity;
• valuing the adequacy of financial and non-financial information supplied to the management of the economic entity, in order to learn the truth inside such organization;
• protecting balance and extra-balance assets of the organization and identifying methods of fraud and loss prevention, for any type of loss