Are charities effectively utilizing internal audits to manage risk and ensure accountability? This paper examines the current state of **internal audit** practices within large charities in the UK, highlighting the growing importance of these organizations in delivering essential welfare services. While regulatory structures and accounting standards have evolved, the study reveals a gap in research concerning the prevalence and operation of **internal audit** functions within the charitable sector. By reviewing existing literature and building upon previous studies from 1987 and 1991, the research explores the representativeness of earlier findings in the context of 1995. Through qualitative research, the paper identifies an expectations gap and a need for enhanced educational initiatives to promote the widespread adoption of internal auditing in larger charities. The author concludes with recommendations for regulators and stakeholders to address these challenges and strengthen the effectiveness of auditing practices in the charitable sector.
Published in the Managerial Auditing Journal, this paper directly addresses the journal's core interest in auditing practices and organizational governance. The study's focus on internal audit within charities provides valuable insights for auditors and managers seeking to improve accountability and transparency in non-profit organizations, aligning with the journal's broader scope.