Every company operates in its own marketplace. It determines the geographic location where it runs its business operations. In a marketplace, there can be various macro-environmental factors that can have a significant influence over the operational activities of the company.

Before proceeding with understanding what industry analysis means, let us understand the meaning of industry first. The industry is a type of economic structure that comprises a group of businesses or enterprises that deal in similar products or services.

The internal auditing of a company involves the assessment of an organization to get a clear idea of its operational activities and its resources. It helps to understand the internal capabilities of an organization to carry out its day-to-day activities