An appraisal of the internal audit organization of the Navy

Abstract

Internal auditing was implemented by the United States Navy in 1951 as a means of management control over financial operations. During the fifties, industrial auditors began to review and appraise functional areas other than financial in order to provide a better service to management. The purpose of this study is to compare the roles internal auditors play in industry and in the Navy today. Additionally, the effectiveness of the Navy audit organization as a means of executive control is determined. The study reveals that Navy Audit is >ust as advanced in its operations as industry and that it is an effective means of control. The major problem facing Navy Audit's management in future years is the recruitment and development of personnel so that the demands of top Navy management will be fulfilled.