Question

The function of internal auditing,as related to communicating results, is to

A. Determine whether any employees are expending funds without authorization.
B. Review the expenditure items and match each item with the expenses incurred.
C. Identify inadequate controls that increase the likelihood of unauthorized expenditures.
D. Ensure compliance with reporting procedures.

Answer 1

Internal auditing's role in communicating results includes ensuring adherence to reporting procedures, developing and integrating evidence into reports, and enhancing conversations between the organization and stakeholders to maintain transparency and drive improvement.

Step-by-step explanation:

The function of internal auditing, particularly in relation to communicating results, is primarily to ensure that the organization adheres to set reporting procedures and standards. This involves a meticulous process where auditors collect data, evaluate it, and then compose a report that both develops ideas and integrates evidence effectively. This report serves a key role in continuous improvement, highlighting areas of compliance as well as those needing attention.

Moreover, such communication is vital not only for maintaining transparency but for fostering a conversation between the organization and its stakeholders about its performance and potential areas for enhancement. It is akin to the Scientific Method whereby measurements and results need to be clearly communicated to the scientific community. In the context of business, clear and accurate communication can prevent misunderstandings and ensure that all findings are actionable.