Describe the factors the finance director should consider before establishing an internal audit department?

Following factors should be considered:-

1. Make a Internal audit team considering well professionals,

2. Establish a strong internal control system within organization,

3. Allocate the work to different professional,

4. Work done professionals should be cross checked by others

1. The cost of establishing IA department. Cost benefit analysis should be performed before establishing IA department
2. current control environment should be assessed to ascertain if there was history of control deficiencies
3. Size and complexity of organisation should be considered. The more larger, complex and diverse company is, need for establishing its own IA department is greater
4. Role of IA department to be identified
5. After identifying role of IA department, FD should consider whether there are skilled employees available in a company who can perform IA or company has to employee new staff