The primary purpose of an internal audit is:
A)To verify the accuracy of a firm's financial statements
B)To punish employees for inefficient performance
C)To meet the requirements of the accounting profession
D)To ascertain employee adherence to organizational policies and procedures

Question

Quizplus · Accepted Answer

The primary purpose of an internal audit is to ascertain employee adherence to organizational policies and procedures. This includes evaluating the effectiveness of the internal control systems, identifying potential areas of risk, and making recommendations for improvement. While verifying the accuracy of financial statements may be a component of an internal audit, it is not the primary purpose. Punishing employees is not a purpose of internal audits, and meeting the requirements of the accounting profession may be a side benefit, but it is not the primary purpose.

The Primary Purpose of an Internal Audit Is