Which of the following statements concerning internal audit is TRUE?
A) Internal audit is an independent function of the company.
B) Internal audit reports both to executive management and the board of directors.
C) Internal audit tests internal controls to provide assurance of their effectiveness.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Internal audit is indeed an independent function within a company, designed to objectively evaluate its operations and controls. It reports to both executive management and the board of directors to ensure a broad oversight and accountability. One of its key roles is to test internal controls to provide assurance regarding their effectiveness, ensuring that the organization's processes are working as intended to mitigate risks, enhance accuracy of financial reporting, and comply with laws and regulations.

Which of the Following Statements Concerning Internal Audit Is TRUE