Final answer:
Internal audits are crucial for assessing and improving the effectiveness of a company's internal control systems, focusing on risk mitigation, accuracy in financial reporting, and legal compliance.
Step-by-step explanation:
Internal Audits are more likely to have working knowledge of various internal control systems. In the context of corporate governance, internal auditors play a crucial role in assessing and improving the effectiveness of internal control systems. This involves an in-depth understanding of how various departments operate and how their processes can be optimized to mitigate risk, ensure accuracy in financial reporting, and comply with laws and regulations. Internal auditors examine procedures and operations, providing assessments to management on the efficiency and effectiveness of the organization's internal controls.