What Is an Internal Audit? Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. These types of audits ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection. Internal auditors are hired by companies who work on behalf of their management teams.
What Is an Internal Auditor (IA)? An internal auditor (IA) is a trained professional employed by companies to provide independent and objective evaluations of financial and operational business activities, including corporate governance. They are tasked with ensuring that companies comply with laws and regulations, follow proper procedures, and function as efficiently as possible. Key Takeaways An
What Is the Internal Capital Generation Rate (ICGR)? The internal capital generation rate (ICGR) is a quantifiable mathematical rate that portrays how quickly a bank is able to generate. The internal capital generation rate is calculated by dividing the bank’s retained earnings by the average balance of the combined equity of all stockholders for a
What Are Internal Controls? Internal controls are accounting and auditing processes used in a company’s finance department that ensure the integrity of financial reporting and regulatory compliance. Internal controls help companies to comply with laws and regulations, and prevent fraud. They also can help improve operational efficiency by ensuring that budgets are adhered to, policies
What Is an Internal Growth Rate (IGR)? An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing, and a firm’s maximum internal growth rate is the level of business operations that can continue to fund and grow the company. The internal growth rate is an important
What Is the Internal Revenue Code (IRC)? The Internal Revenue Code (IRC) refers to Title 26 of the U.S. Code, the official “consolidation and codification of the general and permanent laws of the United States,” as the Code’s preface explains. Commonly referred to as the IRS code or IRS tax code, the laws in Title 26 are enforced
What Is the International Banking Act of 1978? The International Banking Act of 1978 put all American branches and agencies of foreign banks under the control of U.S. banking regulators. It allowed Federal Deposit Insurance Corporation (FDIC) insurance to be provided to these branches. It also required them to conform to U.S. banking regulations related
What Is the International Bank of Reconstruction and Development (IBRD)? The International Bank of Reconstruction and Development (IBRD) is a development bank administered by the World Bank. The IBRD offers financial products and policy advice to countries aiming to reduce poverty and promote sustainable development. The International Bank of Reconstruction and Development is a cooperative
What Is an International Bond? An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer’s native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity. International bonds
What Is the International Energy Agency (IEA)? The International Energy Agency (IEA) is an international intergovernmental organization based in Paris that was established in 1974. Its stated mandate is to maintain the stability of the international oil supply, although its mission has expanded in recent years to emphasize the promotion of renewable energy sources. Key
