Abstract This article focuses on the broad versus narrow concepts of internal auditing and internal control. The expansion of business and the introduction of the corporate form of business organization long ago forced the separation of the investor from management. This divorce of investors from management, together with the demands of creditors, led to the development of periodic audits by independent outside public accountants. This same expansion of business with the resultant departmentalization and specialization by operation and by function, has also led to a widening gap between management itself and the operating units of the business. The subject of "Internal Auditing and Internal Control" supplies with a broad base from which to operate in our discussion here today. Perhaps some brief definitions of terms will be helpful to the purposes. It seems that there are two somewhat different concepts of internal control which should be recognized in discussions. The narrower of these two concepts appears in the definition of the term in auditing texts.
Robert D. Haun (Sat,) studied this question.