Internal Audit: Theoretical literature review

Abstract

The history of internal auditing is a milestone in the field of organizational activity. Its emergence is linked to the economic crisis of 1929 in the United States, and it was only in 1941 that it was established as a function with the creation of the IIA (The Institute of Internal Auditors). The function is still new, as it is still a century old. What's more, it is governed by professional standards, and carried out by competent, independent in-house personnel who are charged with carrying out their assignments according to the normative method.

Internal auditing is a miracle function, and its emergence has provided the solution to a number of long-standing problems, such as information asymmetry, reducing the costs of external auditing and keeping opportunism under control. Given its importance, its definition became official in 1999.

Despite the emergence of this function under severe circumstances, it has developed rapidly from a classic internal audit to a more modern internal audit with a broader scope of application. In addition, it must have a high-level reporting line to guarantee its independence. Internal auditing remains of considerable interest to organizations, given the added value it delivers through its various missions.

The study was conducted in the form of a "state of the art" report, with a view to demonstrating the historical evolution of internal auditing and its rapid development in terms of definition and scope, as well as revealing the work organization of internal auditing, and then presenting the different reporting lines an internal auditor can have.

Keywords : Internal audit, Crisis, The IIA, mission.

JEL Classification: M42

Paper Type : Theoretical article