Answer to Question #160576 in Economics for a

Question

Do you think the 1MDB and its auditor Parker Randall could have avoided facing so much problems in regard to the 2015 audit if only there was a successful internal audit operation in the 1MDB? Explain your stance. 

Answer 1

Internal audit effectively has a dual reporting relationship, where the head of internal audit reports to executive management (ideally the CEO) for assistance in establishing direction, support, and administrative matters; and to the audit committee for strategic direction, reinforcement and accountability.