The function of internal audit is determined by: Select one: A. The institute of internal auditors....

The function of internal audit is determined by: Select one:

A. The institute of internal auditors.

B. The government.

C. The external auditor.

D. Those charged with governance and management.

Expert Solution

Internal audit is the systematic and independent examination of an entity's processes and functions with a view to enhance and add value to the entity's operational efficiency. It focusses on highlighting key areas of concern and also monitor's the way in which such concerns are addressed.

An internal auditors is appointed by the management and where appropriate, those charged with governance. Since the outcome of the internal audit is also to be analysed by the management and where appropriate, those charged with governance in almost all the cases, its scope, function and remuneration is also determined by the management and where appropriate, those charged with governance.

Hence, the appropriate answer to the above question is Option D - Those charged with governance and management.

Evaluation of other options

Institute if internal auditors merely provides standards, guidance and certifications to internal auditors. The Government has no active role in how a company is operated (except in the case of government-owned entities), hence internal auditors have little to do with the Government. The only communication that may happen between in the internal auditor and the external auditor is when the external auditor considers using the internal audit report for his/her audit procedure. An external auditor does not appoint an internal auditor, hence it has no say in determining their functions.

ekkarill92 answered 1 year ago

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The function of internal audit is determined by: Select one: A. The institute of internal auditors....

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