Question

Which of the following is normally a responsibility of the committee with regard to the internal audit activity?

1) Developing the internal audit plan
2) Conducting the internal audit
3) Reporting the findings of the internal audit
4) Implementing the recommendations of the internal audit

Answer 1

The committee is typically responsible for overseeing the internal audit process, including reporting the findings, but not for developing the audit plan, conducting the audit, or implementing recommendations (which are handled by the internal audit staff and management).

Step-by-step explanation:

The committee with regard to the internal audit activity is normally responsible for overseeing and ensuring the quality and effectiveness of the internal audit process. While the internal audit team would develop the internal audit plan and conduct the audits, the committee's role includes:

1. Approving the internal audit plan.
2. Reviewing and reporting the findings of the internal audit to senior management and the board of directors.
3. Ensuring that management takes appropriate action on the audit findings and recommendations.

Therefore, among the given options, the one that is normally a responsibility of the committee is reporting the findings of the internal audit. The committee plays a crucial role in providing governance and oversight, rather than executing the actual audit or implementing the recommendations, which are typically the responsibilities of the internal audit staff and management, respectively.