Answer (D) is correct . According to the definition of internal auditing, “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
Answer (A) is incorrect because Reducing external audit fees may be a direct result of internal auditing work, but it is not a reason for staffing an internal audit activity.
Answer (B) is incorrect because The primary role of internal auditing includes but is not limited to assessing the efficiency of operations.
Answer (C) is incorrect because Internal auditors serve management as well as the board.
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