The correct answers are: The internal audit function is a control function established by management; Internal auditors review and report on the structure and operational effectiveness of systems.

Internal auditors cannot be independent in the same way as external auditors because they are employed by the companies that they report on. Internal auditors should nevertheless be as independent as possible and should not report on their own work. It may be necessary in some circumstances for external auditors to duplicate the work of internal auditors, although it should be avoided wherever possible. Internal auditors are not required to report their findings to external auditors, although they may be permitted to co-operate with them.