Which of the following is a role of Internal Audit?

• A. Reviewing Internal Controls, Risk Management systems and Financial Reports
• B. Developing marketing strategy
• C. External auditing
• D. Managing cash flows day to day

Answer: (A)

Internal Audit exists to provide independent assurance that an organization's governance, risk management, and control processes are sound. Its main job is to review how well internal controls are designed and functioning, assess whether risks are being identified and managed properly, and check the reliability and accuracy of financial reporting. By doing this, internal audit helps management and the board understand where controls may be weak and where improvements are needed, contributing to better governance and decision-making.

That’s why reviewing internal controls, risk management systems, and financial reports is the best fit for the role. The other activities lie outside internal audit’s remit: developing marketing strategy is a management/marketing function; external auditing is a separate, independent assessment of financial statements conducted by an external auditor; and managing cash flows day to day is a treasury/finance operation focused on operations rather than assurance and governance.