Audit History and Modern Standards

Topics: Auditing

Part 1

Internal auditing has been around since pretty much the beginning of time. According to Noorah Al ShamsiShamsi’s article titled “A Brief History about Internal Audit Practice”, different reigns of time such as the Zhao dynasty of China and the reign of calif Omer bin Al Khattab established internal and external auditing for use of the cities that were under their command. (Al Shamsi, 2018) Our textbook mention that the beginning of modern internal auditing was implemented by the creation of The Institute of Internal Auditors (IIA).

(Anderson, 2017, pp. 1-9) The creation of the IIA was necessary due to the increase in the size and complexity of the company.

The role of internal auditing can be broken down into five key components according to the textbook for this class. The five components are to help the organization accomplish its objectives, evaluate and improve the effectiveness of risk management, control, and governance processes, provide assurance and consulting activity designed to add value and improve operations, guide independence and objectivity, and use a systematic and disciplined approach in the engagement process.

(Anderson, 2017, pp. 1-3) In my own experience, I would say that the role of an internal auditor is to test the controls that a company has created and implemented to see that they are functioning properly. If these controls are functioning properly, then your engagement should show the control of the financial statements is working properly. If the controls are not working properly, then your engagement would share your findings with the board of directors or the audit committee, and you may offer to consult on how to improve their current situation.

Get quality help now
Sweet V

Proficient in: Auditing

4.9 (984)

“ Ok, let me say I’m extremely satisfy with the result while it was a last minute thing. I really enjoy the effort put in. ”

+84 relevant experts are online
Hire writer

Internal auditing is a very important profession, especially after the development of The U.S. Sarbanes-Oxley Act of 2002 that among other things requires the chief executive officer and the chief financial officer to certify the company’s financial statements.

Part 2

The International Professional Practices Framework is the authoritative guidance for the internal audit profession, but why is it needed and how was it created? The history of internal auditing can be traced back to the B.C. years. This is back when travel was by horse or foot, and the communication could only travel as far as one could walk or ride. There was no faster mode available. In my opinion, this would make it seem that businesses would remain more house, in other words, they would not be as global expansive as they are today. The world has come a long way since then from the invention of the telephone to today’s marketplace in e-commerce. With this evolution in technology, businesses can open in multiple areas and stay connected to a high degree. Take Subway for instance, according to, in 2018 they have 42,431 different locations up and running. (Number of Subway restaurants worldwide 2018) With this being the case and knowing what we know from part one that the CEO and CFO must certify the company’s financial information, the internal audit profession is a must-have to assure the upper level of a company. Subway is just of the many examples of why we have internal auditing. Chapter 2 of our textbook says that “over time these activities (internal auditing activities) became more formalized and, with the founding of the IIA, the practice of internal auditing began evolving into a profession.” (Anderson, 2017, pp. 2-3 – 2-5) The book continues to say that guidance for the profession came not long after the founding of the IIA. The first guidance was created in 1947 called the Statement of Responsibilities of the Internal Auditor. This stated the objectives and scope of internal auditing. The 1947 guidance would be amended in 1971, 1976, 1981, and 1990 as the industry evolved. Also in 1978, the IIA issued five general standards and 25 specific guidelines consisting on how to manage and perform internal audit engagements called the Standards for the Professional Practice of Internal Auditing. In 2006 with the result of the continued increase in size and complexity of companies, the IIA revised the standards to make sure that they were clear and current. Through this process, the International Professional Practices Framework (IPPF) was established along with the IPPF Oversight Council. This is the current standard-setting body of today’s age.

Work Cited

  1. Al Shamsi, N. (2018, August 01). A brief history of Internal Audit practice. Retrieved from
  2. Anderson, U. (2017). Internal auditing: Assurance & advisory services. Lake Mary, FL: Internal Audit Foundation. pp. 1-3, 1-9, 2-3 – 2-5.
  3. Number of Subway restaurants worldwide 2018 | Statistic. (n.d.). Retrieved from

Cite this page

Audit History and Modern Standards. (2022, May 08). Retrieved from

Let’s chat?  We're online 24/7