Question

8) Which of the following best describes internal auditing's primary purpose in reviewing the organization's existing governance, risk management and controls processes? A) To ensure all weaknesses in the internal control system are corrected B) To develop the audit plan C) To provide reasonable assurance that the processes will enable the organization's objectives and goals to be met D) To offer an opinion as to whether the financial statements are fairly stated E) To comply with the IPPF Code of Ethics

Answer 1

Answer: A

The purpose of internal auditing is to ensure that the internal control system is functioning at its best. Such auditing highlights bottlenecks in the system (such as wasting of materials, high overhead cost, etc.), and makes a way for correction.

Other options are not correct:

Option B: it is relating to statutory audit but not internal audit.

Option C: this is the act of top-management.

Option D: this is the act of statutory audit.

Option E: this is the act of management of the organization.