Which of the following is NOT a stated duty of the internal audit functional area?

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Multiple Choice

Which of the following is NOT a stated duty of the internal audit functional area?

Internal audit focuses on providing independent assurance about the effectiveness of the control environment, including whether internal controls are working as intended and whether policies are being followed. It identifies deficiencies, evaluates how well controls are designed and operating, and communicates findings to management and the board through engagement-by-engagement reports and periodic summaries. The statement about producing a report at least annually to the board detailing deficiencies in internal controls and any shortcomings in compliance with internal policies and procedures is not a fixed, formal duty of internal audit in many practice frameworks. While internal audit will surface deficiencies and assess compliance, the board-level, annual summary of all deficiencies and policy shortcomings is not typically prescribed as a standalone internal-audit duty. Instead, such governance reporting is usually addressed through the set of reports generated from individual audits and through the board’s governance process, with management bearing primary responsibility for the annual control assessment. The other duties—identifying deficiencies in internal controls and assessing compliance with internal policies—are core, ongoing activities of internal audit, and reviewing external audit reports is often part of coordinating assurance work.

Internal audit focuses on providing independent assurance about the effectiveness of the control environment, including whether internal controls are working as intended and whether policies are being followed. It identifies deficiencies, evaluates how well controls are designed and operating, and communicates findings to management and the board through engagement-by-engagement reports and periodic summaries.

The statement about producing a report at least annually to the board detailing deficiencies in internal controls and any shortcomings in compliance with internal policies and procedures is not a fixed, formal duty of internal audit in many practice frameworks. While internal audit will surface deficiencies and assess compliance, the board-level, annual summary of all deficiencies and policy shortcomings is not typically prescribed as a standalone internal-audit duty. Instead, such governance reporting is usually addressed through the set of reports generated from individual audits and through the board’s governance process, with management bearing primary responsibility for the annual control assessment. The other duties—identifying deficiencies in internal controls and assessing compliance with internal policies—are core, ongoing activities of internal audit, and reviewing external audit reports is often part of coordinating assurance work.

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