Which of the following correctly distinguishes internal audit from external audit?

Test yourself: pick an answer

• A)Internal audit reports to management and those charged with governance, whereas external audit reports to the shareholders
• B)Internal audit expresses an opinion on the financial statements, whereas external audit reviews operations
• C)Internal audit is required by law for all companies, whereas external audit is voluntary
• D)Internal auditors must be independent of the entity, whereas external auditors may be employees