An internal audit is an independent, objective, and systematic process that evaluates and improves an organization's risk management, control, and governance processes.

Some types of internal audits include:

• Financial audits

  The most commonly performed internal audit, which examines the accuracy, reliability, and completeness of an organization's financial statements, transactions, and records.

• Operational audits

  Assess a company's control mechanisms and their overall effectiveness, efficiency, and reliability.

• Compliance audits

  Focus on ensuring that an organization adheres to relevant laws, regulations, and internal policies.

• Environmental audits

  Focus solely on the environmental impact of the company.