The role of internal audit:
The internal audit has two key roles in relation to risk management.
1:Monitors the company's overall risk management policy to ensure it operates effectively.
2:Monitors the straregies implementes to ensure that they continue to operate effectively.
Internal may assist in the development of systems.However,its key role will be in monitoring the overall process and in providing assurance that teh systems which departments have designed meet objectives and operate effectively.It is important that the internal audit department retains its objectivity towards these aspects of its role,which is another reason why internal audit would generally not be involved in the assessment of risk and the design of the systems.
Limitations of internal audit:
Internal audits are employed by the organization and this cn be impair their independenc and objectivity and ability to report fraud/error to senior management because of perceived threats to their continued employment with in the company.to ensure the transparency ,best practice indicates that the internal audit should report both to management and those charged with governance(audit committee).Internal auditors are not required to be professionaly qualified and so there may be limitations in their knowledge and technical experties.