Auditing Theory Exam 2025 – 400 Free Practice Questions to Pass the Exam

Internal auditing primarily aims to safeguard against the loss of company assets. This function involves systematically evaluating an organization's risk management, control activities, and governance processes. By assessing these areas, internal auditors help ensure that the company’s assets—whether they are physical, financial, or intangible—are effectively protected from misappropriation or waste.

The role of internal auditors includes examining the processes and policies in place to prevent losses, whether through fraud, inefficiencies, or non-compliance with regulations. They provide recommendations to enhance controls and reduce vulnerabilities, ultimately supporting the organization’s overall integrity and operational efficacy.

While safeguarding against fraudulent financial reporting, regulatory penalties, and inadequate employee training is also important, the core focus of internal auditing is on preserving the assets of the company. This is achieved by identifying weaknesses in controls and suggesting improvements that can prevent asset loss in a broader sense.