Authors : Ali Idiab Mohamed Idiab, Mohamad Sabri Bin Haron and Shofian Bin Hj. Ahmad
Abstract: Internal auditing has witnessed enormous development in many aspects over last two decades. In the practical performance of internal auditing function, this was a limited activity, restricted in investigation and auditing of financial and accountancy processes. Later, it came to investigate and audit all processes and even became eyes and ears of higher administration. With many economical developments that have occurred and spread of many commercial banks, failure of conditions within various commercial banks and appearance of many professional reports that evaluate governmental control systems during last two decades there is a need for a greater role in verification and evaluation of control dealing with risks. A considerable amount of professional reports confirmed importance and role of internal auditing, inspection and evaluation of control systems and specification and evaluation of dealing with all risks that commercial banks are confronted by. As a result of orientation of organized status of internal auditing, commercial banks moved towards sole independence by coming under supervision of an audition administration committee which board of directors depends upon to acquire authenticated data. Initially, internal auditing was connected to external auditing and it adopted many of methods. In some commercial banks, programs and plans of internal auditing were arranged in accordance with methods and styles of external auditing. However as internal auditing developed as a function and profession, it came to have its own methods and procedures besides private mechanisms which are based upon experience of practical performance, helped by results of theoretical scientific research which deals with study of internal auditing as a function and profession.
Ali Idiab Mohamed Idiab, Mohamad Sabri Bin Haron and Shofian Bin Hj. Ahmad, 2011. Internal Auditing in Commercial Banks. International Business Management, 5: 287-294.