Who are internal auditors?

Internal auditors are individuals who are employees of the organization they are auditing and are primarily focused on providing assurance and consulting activities. Their role involves evaluating the effectiveness of risk management, control, and governance processes to ensure the organization's objectives are met efficiently and effectively. Since they are part of the same entity, they have a unique and in-depth understanding of its operations and can identify potential improvements.

By working alongside management, internal auditors contribute to enhancing the organization’s operations, compliance with laws and regulations, and reliability of financial reporting. Their findings and recommendations often lead to operational efficiencies and strengthening the internal control environment.

The other options describe different roles that do not align with the definition of internal auditors. Independent consultants are not employees of the entity and typically serve a more temporary or consultative role. External auditors, on the other hand, are independent third parties that perform audits of the entity’s financial statements and compliance, rather than internal processes. Management overseeing daily operations refers to the individuals responsible for the overall functioning of the company but does not specifically relate to the audit functions performed by internal auditors.