ExpertEasy1 markMultiple Choice
ACCA · Question 45 · Syllabus C: Business functions, regulation and technology
[Section A] Who is the primary audience or beneficiary of an Internal Audit report?
[Section A] Who is the primary audience or beneficiary of an Internal Audit report?
Answer options:
A.
External shareholders and the general public
B.
Management and the Board of Directors
C.
Government tax authorities
How to approach this question
Distinguish between the purpose of internal vs. external audit.
Full Answer
B.Management and the Board of Directors✓ Correct
The internal audit function is designed to add value and improve an organization's operations. Its reports are internal documents intended for management and the board (specifically the audit committee) to help them improve risk management, control, and governance processes. External audits are for shareholders.
Common mistakes
Confusing internal audit with external audit. External audit provides an opinion to shareholders.
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