Which function is defined by the IIA as 'an independent, objective assurance and consulting activity designed to add value and improve an organization's operations'?

Which function is defined by the IIA as 'an independent, objective assurance and consulting activity designed to add value and improve an organization's operations'?

• A. Internal control
• B. External audit
• C. Internal audit
• D. Audit committee

Answer: (C)

The main idea being tested is the official definition of internal audit. Internal audit is described by the IIA as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. This means the function operates separate from day-to-day management (independence) and maintains impartiality (objectivity). It provides two types of work: assurance, by evaluating whether controls and risk management are functioning effectively, and consulting, by advising on improvements to processes, governance, and risk practices. The goal is to help the organization achieve its objectives more efficiently and effectively. This makes internal audit distinct from other concepts. Internal control is the set of processes established by management to achieve objectives, not an independent assurance activity. An external audit is conducted by outsiders to form an opinion on financial statements. An audit committee is a governance body that oversees internal and external audits, rather than the activity itself.

The main idea being tested is the official definition of internal audit. Internal audit is described by the IIA as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. This means the function operates separate from day-to-day management (independence) and maintains impartiality (objectivity). It provides two types of work: assurance, by evaluating whether controls and risk management are functioning effectively, and consulting, by advising on improvements to processes, governance, and risk practices. The goal is to help the organization achieve its objectives more efficiently and effectively.

This makes internal audit distinct from other concepts. Internal control is the set of processes established by management to achieve objectives, not an independent assurance activity. An external audit is conducted by outsiders to form an opinion on financial statements. An audit committee is a governance body that oversees internal and external audits, rather than the activity itself.