What is the primary role of an internal audit function within an organisation?
Correct answer: D. Evaluating risk management and internal controls
- A. Preparing the annual financial statements
- B. Expressing an independent external audit opinion
- C. Determining the organisation’s final tax liability
- D. Evaluating risk management and internal controls
Explanation
Internal audit evaluates and helps improve risk management, governance, and internal controls. An external auditor, not the internal audit function, normally expresses an opinion on the financial statements.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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