Which of the following is an appropriate role for the internal audit activity?

Question breakdown

Tests

Recognize internal audit's appropriate role regarding controls

Difficulty

Easy

Key idea: Internal audit assists the organization in maintaining effective controls by evaluating them and promoting improvement, while management retains ownership of controls.

How to reach the answer

1. The clue word in the correct option is 'assisting', which matches the standard on internal audit's role in control.
2. 'Ensuring' risks are managed (A) and 'implementing' controls (C) are management responsibilities that would impair objectivity.
3. Validating the external auditor's work (D) is not a defined internal audit role.
4. That leaves assisting in maintaining effective controls (B).

Each option

• AIncorrect. Ensuring that risks are managed through controls is management's accountability, not internal audit's.
• BCorrect. The control standard states that internal audit assists the organization in maintaining effective controls by evaluating effectiveness and efficiency and promoting continuous improvement.
• CIncorrect. Implementing controls is a management function and would impair internal audit's objectivity if it later audited them.
• DIncorrect. Internal audit coordinates with external auditors but does not validate their control assessments.

Common trap: 'Ensuring key risks are managed' sounds like strong assurance language, but it assigns internal audit ownership that belongs to management.

In practice: Auditors recommend control improvements and follow up on management action plans. They decline requests to design or operate controls they will later audit.

Remember: Internal audit evaluates and assists; management owns and implements controls.

Drafted with AI assistance and checked against the answer key.