CPFO Risk Assessment Practice Exam

The audit committee is typically responsible for overseeing the internal audit function. This committee, which is usually composed of board members who are independent of management, plays a crucial role in ensuring that the organization's internal controls, risk management processes, and overall governance are functioning effectively.

The audit committee's responsibilities include reviewing and approving the internal audit plan, monitoring the results of internal audits, and ensuring that the internal audit function operates with independence and impartiality. By having this oversight, the committee helps to ensure that the internal audit provides objective assessments of the organization’s operations, identifies areas for improvement, and conveys findings directly to the board.

In contrast, senior management may engage with or utilize the internal audit function, but they do not oversee it in a way that maintains the necessary independence. The operations team, while involved in day-to-day management, is not focused on audit oversight. The compliance department deals with adherence to regulations and policies but does not have the same objectives as the audit committee in terms of oversight of the internal audit.