In the area of information, internal audit is established as an essential means for the exact management of any business economic resources. However, the necessity which issues from the administration, for distinguished management of the available resources, incalculable expenses, limitation and evasion of misconduct, imposes internal auditing as a key factor in the business management effort. There is currently considerable interest in the topic of internal audit and its contribution to exact management of any business economic resources. The decision to set up a separate internal audit department has always been based on cost consideration for small organisations. For many organisations the internal audit comes as a corrective measure rather than a preventive tool. This is because many business owners and even some board of directors see the role of the internal audit as extension of the accounts department and therefore do not see the need for setting up a separate department for audit since the accounts department is believed to be functioning effectively. Consequently, the value or effectiveness of internal audit is lost in such organisations. So will the establishment of internal audit department be beneficial or create additional cost to the organisation?