AVF Company’s new CFO has asked the company’s CAE to meet with him to discuss the role of the internal audit function. The CAE should inform the CFO that the overall responsibility of internal audit is to:
a. Serve as an independent assurance and consulting activity designed to add value and improve the company’s operations.
b. Assess the company’s methods for safeguarding its assets and, as appropriate, verify the existence of the assets.
c. Review the integrity of financial and operating information and the methods used to accumulate and report information.
d. Determine whether the company’s system of internal controls provides reasonable assurance that information is effectively and efficiently communicated to management.