<Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations . It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes . Internal auditing is a catalyst for improving an organization's governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes . With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice . Professionals called internal auditors are employed by organizations to perform the internal auditing activity . </P> <P> The scope of internal auditing within an organization is broad and may involve topics such as an organization's governance, risk management and management controls over: efficiency / effectiveness of operations (including safeguarding of assets), the reliability of financial and management reporting, and compliance with laws and regulations . Internal auditing may also involve conducting proactive fraud audits to identify potentially fraudulent acts; participating in fraud investigations under the direction of fraud investigation professionals, and conducting post investigation fraud audits to identify control breakdowns and establish financial loss . </P> <P> Internal auditors are not responsible for the execution of company activities; they advise management and the Board of Directors (or similar oversight body) regarding how to better execute their responsibilities . As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds . </P>

Discuss the factors that may make an audit necessary and potentially valuable for the company