Which of the following is not a correct interpretation of the definition of internal auditing provided by the IIA?
A) Employees of the organization may conduct internal auditing activities.
B) Internal auditing is a line activity within the organization.
C) All phases of the entity's operations fall within the scope of internal auditing.
D) The auditor's judgment has value when it is free of bias.
E) Internal auditing exists to aid or benefit the entire organization.

Question

Quizplus · Accepted Answer

Internal auditing is considered an independent, objective assurance and consulting activity designed to add value and improve an organization's operations, making it a staff function rather than a line activity. Line activities are those that directly achieve the organization's main objectives, whereas staff functions like internal auditing provide specialized support and advice.

Which of the Following Is Not a Correct Interpretation of the Definition