The article I chose discusses the changing purpose of internal audit
due to increased global connections and expanded business
environments. The most important aspect I learned from this article
is that internal auditing is not static and that internal auditors must
adapt their focus and implement practices that reflect advancements
in the ever-changing business environment. “New rationales and
responsibilities for internal auditing are emerging; but internal
auditing must continue to evolve -- it must change and refocus its
role and relationships,” (Ratliff and Beckstead, 1994).
I think the primary difference in internal and external audits are that
internal audits are a continual process that can quickly pinpoint a
deficiency, communicate it to the source, and execute a corrective
action. The internal auditor answers to the business itself –
managers, department heads, etc. External audits are conducted on
a periodic basis to assess a larger amount of material at one time and
are in essence auditing the internal auditors. External audits are
independent of the business and report to shareholders and outside
entities.
Reference
Ratliff, R. L., & Beckstead, S. M. (1994, December). How world-class
management is changing internal auditing. Internal Auditor, 51(6),
38+. https://link.gale.com/apps/doc/A16529834/ITBC?
u=nhc_main&sid=bookmark-ITBC&xid=105b20f0
