Regarding the internal audit function,which of the following statements is true?
A)Since many internal auditors have accounting backgrounds,the internal audit function should ideally be included within a company's accounting subsystem
B)It is not proper for internal auditors to perform a fraud investigation within any part of their company's system
C)Because of the independence of external auditors,they should never accept previous work of evaluating controls performed by a company's internal auditors
D)Within a company's system,it is preferable to establish the internal audit function as a separate subsystem

Question

Quizplus · Accepted Answer

It is generally recommended to establish the internal audit function as a separate subsystem within a company's system in order to ensure independence and objectivity. This helps to avoid conflicts of interest or potential biases that may arise if the internal audit function is included within another subsystem, such as accounting. Additionally, independence is a key factor in the effective functioning of the internal audit function, and having it as a separate subsystem can enhance its independence. Therefore, option D is the correct statement. Options A and B are incorrect since they are not necessarily true in all cases, and option C is not true since external auditors may consider the work of internal auditors when performing their own audit procedures.

Regarding the Internal Audit Function,which of the Following Statements Is