Function Within Organizations
Internal auditors focus on providing data for the internal use of an organization's managers, while independent, external auditors focus on providing data for external uses by investors and creditors (Singleton-Green, 1994). SAS 300 requirements and the increased use of computerized accounting information have enhanced the role of the internal auditing function by placing the responsibility on the internal auditor to establish an estimated control risk level for which computerized information from internal auditors can be used by independent, external auditors. Such information would include timely and objective evidence about electronic data processing controls design and operation.
The advent of electronic accounting databases, in conjunction with the requirements of SAS 300, introduce a need for additional control over access-update and the coordination of activities related to the maintenance of the accounting database. Within this environment, the role of the internal auditor is enhanced through the assu
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