According to the Institute of Internal Auditors, "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."

The U of L's internal audit department conducts its practice according to its Terms of Reference, the Institute of Internal Auditors' (IIA) Code of Ethics, and the IIA's International Standards for the Professional Practice of Internal Auditing (Standards). The internal audit department reports functionally to the Audit Committee of the Board of Governors, and administratively to the Vice-President, Finance and Administration.