This is an appraisal activity established within an entity as a service to the entity. Its functions include, amongst other things to, examining, evaluating and monitoring the adequacy and effectiveness of the accounting and internal control systems. Internal audit entails independent and constant appraisal of the company’s activities, operations and controls so as to safeguard the company’s assets, ensure reliability of the company’s records and efficiency of operations all of which are aimed at assisting the management to manage the business better. It acts as a watchdog over the company’s entire controls although it can be regarded as one of the controls in itself.