Which of the following best describes the internal audit activity’s responsibility within a risk and control framework?

Which of the following best describes the internal audit activity’s responsibility within a risk and control framework?
A . The internal audit activity constitutes the first line of defense in effective risk management.
B . The internal audit activity provides direction regarding internal controls implementation.
C . The internal audit activity verifies that management has met its responsibility for implementing effective controls.
D . The internal audit activity implements the internal control framework and advises management regarding best practices.

View Answer

Answer: C

Explanation:

The primary responsibility of the internal audit activity within a risk and control framework is to verify that management has met its responsibility for implementing effective controls. This aligns with the IIA’s definition of the internal audit function’s role, which is to provide independent and objective assurance that an organization’s risk management, governance, and internal control processes are operating effectively.

Reference: The Institute of Internal Auditors (IIA) – International Standards for the Professional Practice of Internal Auditing.