The proper organizational role of internal auditing is to
A) Assist external auditors in reducing external audit fees.
B) Perform studies to assist in attaining more efficient operations.
C) Serve as an investigative arm of senior management and the board of directors.
D) Serve as an independent, objective assurance and consulting activity that adds value to the organization.

Question

Quizplus · Accepted Answer

The proper organizational role of internal auditing is to serve as an independent, objective assurance and consulting activity that adds value to the organization. This involves providing assurance on the effectiveness of risk management, control, and governance processes, as well as providing consulting services to improve the organization's operations. Internal auditors should not serve as an investigative arm of senior management or the board of directors, nor should they be solely focused on reducing external audit fees or performing studies for efficiency purposes.

The Proper Organizational Role of Internal Auditing Is to