Internal audit is an independent appraisal activity within an organization that reviews systems, procedures, and compliance with policies. It helps ensure efficient controls are in place for all organizational activities and assets. The purpose of internal audit is to detect errors and fraud, identify risks, and forewarn management about deficiencies. It identifies both issues and opportunities to improve an organization's financial, operational, and planning processes. Certain companies and trusts are required by law to appoint an internal auditor, including those with a paid up capital over 50 lakh rupees or average annual turnover exceeding 5 crore rupees for the last three years.