ACCA Strategic Business Leader (SBL) Practice Exam

What are common functions of internal audit?

1. Market analysis, product reviews, employee training, cost management

2. Reviews of internal controls, compliance, and value for money.

3. Sales forecasting, competition analysis, and team management.

4. Financial auditing, vendor assessments, and regulatory compliance.

The correct answer is: Reviews of internal controls, compliance, and value for money.

The correct answer highlights the primary responsibilities of internal audit functions, which are crucial for ensuring the integrity and effectiveness of an organization's operations. Internal auditors primarily focus on reviewing internal controls, which involves evaluating the effectiveness of the systems and processes that protect the organization from inefficiencies and fraud. Compliance is another significant area of focus, where internal auditors assess whether the organization adheres to laws, regulations, and internal policies. This ensures that the organization operates within its legal and ethical boundaries. Additionally, internal audit functions look into value for money, an assessment that ensures resources are used efficiently and effectively to achieve the organization's goals. These activities are essential for risk management, governance, and operational improvement. In contrast, the other options present functions not typically associated with internal audit roles. The first option lists functions more aligned with marketing and human resources, which fall outside the purview of internal audit. The third option describes sales and competition analysis, which are marketing functions. The fourth option mentions financial auditing and vendor assessments, which might seem related but typically fall under external audit and procurement evaluation rather than internal audit’s scope. Thus, the correct answer effectively encapsulates the core functions that internal audits perform to enhance an organization's governance and risk management framework.