Internal auditing is defined as contributing to the effectiveness of an organization’s governance processes.

Required

a. Explain how an internal audit might contribute to the effectiveness of corporate governance. In formulating your answer consider the following types of audit activities that might be performed:

• Compliance audits

• Assurance audits

• Consulting activities

• Control self-assessment facilitation

b. In their role of improving corporate governance, is the internal audit function working primarily for management or the audit committee? What might be the conflicts between the two parties as they may affect the auditor’s work and the auditor’s reporting?