Question

Which of the following is true about the principle of value proposition to an organization?

A. The internal audit function does not add value to an organization.
B. Only the assurance activities of the internal audit function add value to the organization.
C. Both the assurance and consulting activities add value to the organization.
D. Only the consulting activities of the internal audit function provide value.

Answer 1

The principle of value proposition states that an organization should provide value to its customers or stakeholders. In the case of the internal audit function, both assurance and consulting activities contribute to adding value to the organization. Option C is correct.

Step-by-step explanation:

The principle of value proposition states that an organization should provide value to its customers or stakeholders. In the case of the internal audit function, both assurance and consulting activities contribute to adding value to the organization.

Assurance activities focus on evaluating and improving the effectiveness of the organization's risk management, control, and governance processes. This helps ensure that the organization is operating efficiently and achieving its objectives.

Consulting activities, on the other hand, involve providing advice and recommendations to improve processes, systems, and controls. This helps the organization optimize its operations and make informed business decisions.