In modern business conditions, more and more attention is paid to the introduction of internal audit in our everyday practice and its development and improvement. In this context, the question arises whether the level of development of internal audit in enterprises in the Republic of Serbia corresponds with the achieved degree of development of that profession in the countries of a developed market economy, as well as the role of internal audit in the function of management that manages the enterprise. This issue is also a fundamental problem of this research. The aim of the research is to theoretically and empirically process the relationship between internal audit and enterprise management and to investigate the degree of development of internal audit in enterprises operating in the Republic of Serbia. Empirical research provides answers to the key questions that are the foundation of the research itself, which is: Does internal audit contribute to the improvement of business management? The results of the conducted empirical research point to the conclusion that internal audit contributes to the improvement of business management in companies in the Republic of Serbia. but also point to slow development of internal audit as a profession.