Internal audit is proposed as unrelated to risk management. Which statement corrects that view?
Select an answer to reveal the explanation.
Short Explanation
Audit is like a scheduled pit stop that checks whether the safety systems still work as advertised. Risk managers often help set up those checks so compliance and controls do not quietly drift. Calling the two unrelated leaves the garage door open.
Full Explanation
Risk management and internal audit are complementary: risk managers may establish or support internal-audit processes that verify ongoing compliance and the performance of safety and control systems. Treating the functions as mutually exclusive, forbidding coordination, or limiting audit to publicly traded firms alone misstates the linkage in corporate risk practice for civic and other organizations.