The internal audit function typically focuses on:

Question

Options

• Aoperating and financial controls
• Befficiency and productivity issues
• Cinternal operating information
• DAll of the above

• A
  7% (2)
• B
  4% (1)
• C
  15% (4)
• D
  74% (20)

Explanation

Option D is correct because internal audit is a broad function that encompasses all three of the other choices - it is not limited to any single area. Internal auditors evaluate operating and financial controls (A) to ensure risks are managed and processes comply with policies. They also assess efficiency and productivity (B) to identify waste and operational improvements. Additionally, they review internal operating information (C) to verify accuracy and reliability of data used in decision-making.

Since A, B, and C are each individually true, none of them alone is "wrong" - they are simply incomplete answers, making D the only fully correct choice.

Memory tip: Think of internal audit as a "three-legged stool" - controls, efficiency, and information. Remove any one leg and the stool falls. When you see "All of the above" on an internal audit scope question, it's almost always the answer because auditing is inherently broad and cross-functional.

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