Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?

Question

Options

• AFormally audit all governance activities.
• BProvide strategic guidance on the organizational processes to senior management.
• CAchieve agreement with the board regarding the range of activities, depth of review, and time
• DAudit against the governance structures and practices widely used in the industry.

• A
  10% (3)
• B
  3% (1)
• C
  7% (2)
• D
  80% (24)

Explanation

Option D is correct because internal audit's role in governance is to evaluate whether the organization's governance structures and practices align with widely recognized frameworks and industry standards - not to design or direct governance itself. Option A is wrong because internal audit doesn't formally audit all governance activities; it assesses specific areas within its mandate and risk-based plan. Option B is incorrect because providing strategic guidance to senior management on organizational processes would cross into a management advisory role, compromising auditor independence. Option C describes something closer to an engagement scope agreement with management, not the core expectation of internal audit regarding governance broadly.

Memory tip: Think of internal audit as a mirror, not a director - it reflects how the organization's governance compares to established benchmarks (industry structures and practices), rather than running governance or setting strategy.

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