This project is the evaluation of audit as a tool for the effective management in the insurance industry with a particular reference to great Nigeria insurance company. Inadequate control leads to wastage, while too many controls disrupts effective flow of communication between and within the system of the organization since effective would be evaluated through the output of the system and internal audit is therefore a system within the corporate system which must communicate effectively with other in the organization to enhance and facilitate adequate control for effective management, the present form of internal auditing in the insurance is necessitated by the need to manage the administration of policies, claims, expensive, asset, liability (actual and contingent) and information. It is the believe of researchers that the stated case would provide reliable and valuable information that would serve as bench mark for projecting financial discipline in the industry.