Internal audit is described as the verification of the operations within the business by a specially assigned staff. It is an important tool of management to evaluate the correctness of records on a continuous basis in an organisation.

It is a managerial control which functions by measuring and evaluating the effectiveness of other controls'. According to Howard F. Stettler, "internal auditing is an independent appraisal activity within an organisation for the review of operations as a service to management.

The ultimate purpose of internal audit is protection of assets of the business, not only from fraud but also from other factors like waste, loss, etc.

Demonstrate any three purposes of Internal Audit with suitable examples in about 150 words each.

You are required to mention the Purpose and explain it.

Explain the situation in which that makes Internal Audit relevant.

Justify the Purpose with appropriate instance.