What is the primary function of an internal audit within a corporation?
AEvaluating risk management, control, and governance processes
BExpressing an external opinion on published statutory statements
CFiling corporate tax returns with government authorities
DSetting accounting standards for public enterprises
Explanation
* Internal Audit provides independent assurance to board and senior management regarding risk governance, operational efficiency, and control effectiveness.
* External Audit focuses on certifying whether financial statements present a true and fair view to external stakeholders.
* Internal auditors report directly to the Audit Committee of the Board of Directors.
Exam Relevance
- Topic: Auditing
- Subtopic: Internal vs External Audit
No Comments