Which of the following statements is true regarding managing an internal audit function?
A.
An internal audit function directed towards performing primarily operational activities becomes more effective in providing management with an objective opinion on the design of risk management and governance processes.
B.
An internal audit function is effectively managed when the results of its work achieve the purpose and responsibility included in its audit charter.
C.
The size of the internal audit function, as well as the complexity of its work, determines whether the chief audit executive should create policies and procedures to effectively manage the internal audit function.
D.
When an external service provider serves as the internal audit function, the provider assumes responsibility for maintaining an effective internal audit function.
An internal audit function is effectively managed when its work fulfills the purpose, authority, and responsibilities established in the internal audit charter and contributes meaningful value to the organization. The charter defines what internal audit is expected to accomplish, so achievement of that mandate is a central measure of effective management. Performing primarily operational activities does not automatically improve internal audit effectiveness and may move the function toward management responsibilities. Policies and procedures are needed to support consistent management of the function, although their form and degree of formality can vary according to size and complexity. Outsourcing internal audit work also does not transfer ultimate organizational accountability for maintaining an effective internal audit function to the external provider. Therefore, option B most accurately describes effective management of internal audit.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit