An internal auditor is a municipal employee responsible for independently examining the organization's financial controls, processes, and operations. Unlike external auditors who verify financial statements, internal auditors focus on improving efficiency, ensuring compliance with policies, and identifying risks before they become problems. They review everything from procurement practices to payroll systems, reporting findings directly to council or an audit committee. Internal auditors help protect public funds by detecting errors, waste, or fraud. Larger municipalities typically have dedicated internal audit departments, while smaller communities may share this function or contract it out.