The internal audit activity is responsible for which of the following actions related to an organization’s internal controls?

The internal audit activity is responsible for which of the following actions related to an organization’s internal controls?
A . Mitigating risks affecting achievement of organizational objectives.
B . Enabling opportunities affecting achievement of organizational objectives.
C . Analyzing and advising regarding costs versus benefits of control activities.
D . Attesting to fairness of financial statements

View Answer

Answer: C

Explanation:

Internal audit activities include evaluating the effectiveness and efficiency of internal controls, and part of this process involves analyzing and advising on the cost-benefit relationship of control activities.

This function helps ensure that the internal controls in place are not only effective in mitigating risks but are also economically justified