The objectives of Internal Audit can be stated as follows:
To verify the accuracy and authenticity of the financial accounting and statistical records presented to the management.
To ascertain that the standard accounting practices, as have been decided to be followed by the organization, are being adhered to.
To establish that there is a proper authority for every acquisition, retirement and disposal of assets.
To confirm that liabilities have been incurred only for the legitimate activities of the organization.
To analyze and improve the system of internal check; in particular to see (i) that it is working; (ii) that it is sound; and (iii) that it is economical.
To facilitate the prevention and detection of frauds.
To examine the protection afforded to assets and the uses to which they are put.
To make special investigations for management.
To provide a channel whereby new ideas can be brought to the attention of management.
To review the operation of the overall internal control system and to bring material departures a non-compliance to the notice of the appropriate level of management; the review also generally aims at locating unnecessary and weak controls for making the entire control system effective and economical.