Answer to Question #160786 in Economics for aliasfeea

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.