Summary: Publisher Summary 1 This analytical study examines the function of internal auditing from the viewpoint of its role within organizations and within the economics of societies and governments. Swanson and Marsh place internal auditing in the context of the scientific conceptual framework of Living Systems Theory.   Publisher Summary 2 This analytical study examines the function of internal auditing from the viewpoint of its role within organizations and within the economics of societies and governments. Swanson and Marsh place internal auditing in the context of the scientific conceptual framework of Living Systems Theory, and thus provide a basis for a systematic theoretical framework and a theory based on observable, measurable entities. They identify the advantages of using this system to advance the knowledge and understanding of organizations, and also propose a higher level of internal audit functions that can advance modern societies.