The directive of the Civil Service Commissioner states that “internal auditing is an internal management resource inseparable from the organization, working to advance its goals and improve its methods, while safeguarding the public interest. This is achieved through assessing the proper operation of the audited body in terms of compliance with the law, proper management, integrity, cost-effectiveness, efficiency, and the effectiveness of the organization’s activities.”
The Internal Audit Law of 1992 stipulates that “every public entity shall establish an internal audit conducted by an internal auditor,” thereby clarifying that the role of internal auditing is to examine the following issues:
1. To assess whether the actions of the public body, its officers, and its employees are proper, in terms of adherence to the law, proper management, integrity, cost-efficiency, and whether they contribute to achieving the set goals.
2. To verify that the binding provisions applicable to the public body are followed.
3. To examine the management of the public body’s assets and liabilities, including its accounting practices, as well as the safeguarding of property, and the holding and investment of funds (subject to the exception in section 2(c)).
4. To ensure that decisions within the public body are made according to proper procedures.
5. If the public body is a controlled entity, as defined in paragraphs (1) or (3) of the definition of a public body in section 1 (hereinafter – a controlled body), to ensure the correction of deficiencies identified by the State Comptroller.
