Internal Auditing Developed Between 1900 And 1950 Essay

766 Words Jan 10th, 2016 4 Pages
Internal auditing developed between 1900 and 1950. But, it was during the thirties and early forties that it became used worldwide. Brink was the first to publish a significant text on internal auditing. The Institute and the profession grew rapidly to the demanding needs of World War Two. It was also during this period that internal auditors began to be more concerned with more than a financial audit. Large organizations began to understand the true value of internal auditors, were they can perform a better service than only looking for accounting and input errors. This new concept of auditing had management acceptance because the recommendations made by internal auditors were more helpful than those provided by external auditors, moreover because findings remained internal and were not made public. Then there was the operational audit that started; operational auditing uses an inductive approach in that it drew from accounting documents recommendations for change that is moved from the specific or actual to the ideal. Internal auditors thus pioneered the concept of operational auditing. However, during this same period a similar concept, called management auditing, was developed in the literature of management.
The management audit was organized around the functions of management and followed a deductive approach as opposed to the inductive approach of operational auditing. These two similar but separate concepts were the forerunners of today’s movement toward the…

Related Documents