How often should internal audits generally be conducted?

Conducting internal audits annually or semi-annually is widely recognized as a best practice in the field of internal auditing. This frequency allows organizations to regularly assess their risk management, internal controls, and governance processes. By performing audits on this schedule, organizations can identify issues, improve processes, and ensure compliance with applicable regulations and policies in a timely manner.

An annual or semi-annual audit cycle provides a balance between thoroughness and practicality. It ensures that audits are frequent enough to catch changes in the business environment or internal processes that could pose risks, but not so frequent that they become disruptive or overly burdensome to the organization's operations. This frequency also allows for the effective allocation of resources, maximizing the value gained from the audit process.

Other options suggest frequencies that are either too infrequent, such as every five years or only upon legal requirement, or too frequent, such as daily or weekly, which would be impractical for most organizations. Regularly scheduled audits align with the strategic goals of maintaining operational integrity and accountability within the organization, supporting proactive management rather than reactive measures.