The main limitations of internal audit are as follows:
• Independence (or lack of) – can internal audit be truly independent of the organization or they are controlled
• Variation of standards – not uniform across the profession. Compare this with external auditors who, on a global basis, have
ISAs against which their performance can be measured.
• Relatively new profession – still evolving in many companies may not have.
• Expectations gap – problem of what the internal auditor’s role is perceived to be.
• Understanding of internal audit
– negative view by some – perhaps seen as ‘checking up’ on other employees on behalf of the
superiors.