12 Questions
What is the primary responsibility of the audit committee?
Setting the overall direction for internal audit activities
Why must audit committee members be independent directors?
Due to SOx requirements
Who can attend audit committee meetings?
Members of management and others invited by the committee
What is the purpose of the audit committee's internal audit function?
To provide assessments of internal controls and financial activities
What is the typical size of an audit committee?
5 to 6 members
What is the outcome of the audit committee's decisions?
They are enacted through board resolutions
What is the typical reporting structure for an internal audit function in a larger enterprise?
The internal audit function reports to the audit committee of the board of directors.
What tends to be the focus of many audit committees?
Financial reporting and SOx compliance issues.
What is the primary role of the audit committee in relation to the internal audit function?
To oversee the internal audit function's budget and plans.
Why should IT auditors be more involved with the audit committee?
Because IT issues and internal controls play a significant role in modern enterprise operations.
What should internal audit provide to the audit committee?
The results of their work and highlights of issues requiring further action.
Who do IT auditors typically report to in a larger enterprise?
The chief audit executive (CAE).
Learn about the role of IT auditors in internal audit organizations, their reporting structure, and the importance of internal controls in enterprises. Understand the connection with the COSO framework and the Sarbanes-Oxley Act.
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