Abstract:

The internal audit represents the activity of objective examination of the assembly of company’s activities with the purpose of providing an independent assessment of the risk management, control and processes related to the management of the business. The objectives of the internal audit, as regulated by the legal provisions in force are the following:

• Verification of conformity of the activities performed in the economic entity subject to auditing with policies, programmes and management in compliance with the legal provisions in force.
• Assessment of the degree of adequacy and enforcement of financial and non-financial controls disposed and carried out by the company’s management with the purpose of increasing the efficiency of the respective activity.
• Assessment of the degree of adequacy of financial and non-financial data/information intended for the acknowledgment of the realities in the economic entity.
• The protection of the balance sheet and extra balance patrimony elements and the identification of the methods for the prevention of frauds and losses of any type.

Taking into consideration the objectives that the internal audit department within a company should have in view, the role, necessity and importance of this activity in the company’s organisational chart could be assessed, meaning that the implementation of an internal audit system that is adequate and effective could substantially lead to a better management of the company’s activity, to cost optimisation, to the carrying on of by the company of profitable operations and  transactions and implicitly to the increase of the entire activity performance, subject to observing  the legal reporting applicable framework.