Question

The primary focus of internal audit includes

a. internal control evaluation, process and procedure reviews, and risk management.
b. material misstatement identification, ethics, and internal control environment.
c. legal and regulatory compliance, testing procedures, and significant management estimates.
d. internal control evaluation, ethics, and risk of material misstatement evaluation.

Answer 1

Internal audit primarily focuses on evaluating internal controls, reviewing processes and procedures, and managing risks to ensure organizational operations are reliable, effective, and compliant with regulations.

Step-by-step explanation:

The primary focus of internal audit includes internal control evaluation, process and procedure reviews, and risk management. Internal audit is a comprehensive review of an organization's operations, controls, and governance processes, which plays a critical role in ensuring the integrity and efficiency of its operations. The internal audit function assesses various risk exposures relating to the organization's governance, operations, and information systems in regard to their reliability, integrity, effectiveness, and compliance with laws, regulations, and contracts. It is essential for internal auditors to evaluate the systems put in place to ensure that the organization's operations are conducted in an appropriate manner and adhere to necessary laws and regulations while achieving their goals effectively.