SIGNIFICANT CONTRIBUTIONS OF MODERN INTERNAL AUDITING TO MANAGEMENT.
Modern internal auditing has been developed to provide the protection management needs, in the same sense that external auditing (public accounting) has developed to provide the protection investors need. Internal auditing is not new. Internal auditing staffs were maintained by a considerable number of concerns prior to 1900. Internal auditing functions have been carried on in one way or another down through the ages. Modern management is finding that modern internal auditing is not just a means of checking up on the petty cash funds and payroll bank accounts to see that the system of internal control of cash and receivables and merchandise is functioning. It is finding that the techniques of auditing, verification by test check, physical inspection, record analysis, and common sense appraisal in the light of the facts developed afford a means of doing something more than keeping the cashier honest. It is finding that sales managers, branch managers, and construction engineers, being human, all give a better performance and give more factual report