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• Increase in business size. As business grow, it becomes more and more necessary to have
a function that checks all the increasing levels of internal control and operation.
• Dynamic technology– the frequent changes in technology has made some companies to
have their controls updated on a continuous basis. This calls for constant feed back on
controls requiring updating through use of expert advice for internal audit function.
• Legislation and regulatory requirements. As the concept of corporate governance becomes
necessary in business management, the need of internal audit has increased. Companies
are now required by regulations to have audit committees to oversee operation of controls
within the company and to which the internal audit function reports.
• Competition. High competition in business calls for efficient operations by companies so
as to survive. This can be achieved through strong controls and cost effectiveness which is
enhanced by internal audit.
Wilfykil answered the question on April 11, 2019 at 08:00
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