What defines an internal auditor?

An internal auditor is best defined as an auditor who is employed by the organization or has worked for them recently. This relationship to the organization is crucial because internal auditors have a deep understanding of the organization's operations, processes, and risks, which enables them to provide valuable insights and recommendations for improving internal controls, compliance, and overall effectiveness.

Internal auditors conduct assessments and evaluations from within the organization, often working closely with various departments to identify areas for improvement and ensure adherence to policies and regulations. This proximity to the organization allows them to develop tailored audit plans that align with organizational objectives, making their contributions particularly impactful.

In contrast, the other options refer to auditors who are not part of the organization, either because they are external or have no prior association, which would limit their ability to provide the same level of insight and understanding. An auditor specializing in external assessments focuses on evaluations that are independent of the organization's internal operations, which is a fundamental distinction between the roles of internal and external auditors.