Who instigates an internal audit?

An internal audit is typically instigated by an organization to assess its compliance with laws, regulations, and internal policies. The organization's management is responsible for ensuring that the organization operates effectively and efficiently, as well as maintaining compliance with applicable standards. By initiating an internal audit, management seeks to identify areas for improvement, assess risk management processes, and ensure that the organization is following established protocols.

While external entities like the Internal Revenue Service, financial institutions in the state, or professional organizations like the American Medical Association may conduct audits or assessments under certain circumstances, they do not initiate internal audits within an organization. The internal audit process is a proactive measure taken by the organization itself to maintain accountability and uphold high standards of practice.