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An internal audit is an independent function of the company which has a unique reporting relationship. This is shown in what line of defense?Select answer from the options belowthird line of defensefirst line of defensefourth line of defensesecond line of defense

Question

An internal audit is an independent function of the company which has a unique reporting relationship. This is shown in what line of defense?Select answer from the options belowthird line of defensefirst line of defensefourth line of defensesecond line of defense

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Solution

The internal audit is part of the third line of defense. The first line of defense is the operational management who own and manage risks. The second line of defense includes functions that oversee or specialize in risk management and compliance. The third line of defense is the internal audit, which provides independent assurance to the board and senior management on the effectiveness of governance, risk management, and internal controls.

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