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Question 217

Which of the following are core responsibilities to be included in the internal audit charter?

1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.

2. Determine the adequacy and effectiveness of the organizations systems of internal accounting and operating controls.

3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.

4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

    Correct Answer: D

    The core responsibilities to be included in the internal audit charter should involve determining the adequacy and effectiveness of the organization's systems of internal accounting and operating controls. This helps in ensuring that the internal control structures are adequate and functioning properly. In addition, reporting to those members of management who should be informed of the results of audit examinations, the audit opinions formed, and the recommendations made is essential. This ensures that the results of the audit are communicated for further action. Therefore, options 2 and 4 are correct.

Discussion
Elvoo

why not 4?