Which of the following is NOT listed as a limitation of Internal Audit?

• A. Budget constraints
• B. Independence
• C. Organisational constraints
• D. Self-Interest Threat

Answer: (A)

Understanding what can limit Internal Audit helps explain why budget constraints aren’t typically listed as a formal limitation. Internal Audit’s effectiveness hinges on objectivity and access. Threats to independence (for example, self-interest threats) are classic limitations because they can compromise judgment and impartiality. Organizational constraints—like restricted access to information, limited cooperation from management, or constraints on audit scope—also limit how thoroughly audits can be conducted. The “Self-Interest Threat” is a specific way independence can be compromised, thus a limitation to objectivity.

Budget constraints, while they can affect how much work is planned or how deeply audits are performed, are generally treated as a resource planning issue rather than a formal limitation on independence or objectivity. So, budget constraints are not typically listed among the core limitations of Internal Audit.