What is the role of internal audit in risk management assurance?

The role of internal audit in risk management assurance is primarily focused on enhancing the effectiveness of governance and control processes. This involves providing an independent and objective assessment of the organization's risk management framework, ensuring that risks are identified, assessed, and managed appropriately. Internal auditors evaluate the adequacy and effectiveness of internal controls, helping to ensure that the governance structure is robust and capable of supporting the organization's objectives.

By promoting accountability and transparency, internal audit helps organizations to achieve strategic goals while effectively managing risks. They do this by assessing internal processes, identifying areas for improvement, and recommending best practices in risk management. This aligns with the broader objective of ensuring that the organization's risk management efforts are effective in mitigating risks and supporting operational efficiency.

The other options, while relevant in various organizational contexts, do not capture the primary function of internal audit in relation to risk management assurance. For instance, enforcing compliance with laws is important but is more of a regulatory function than a core focus of internal audit. Increasing profitability is outside the primary purpose of internal audit, as its role is not to drive financial performance directly but to ensure that risks are managed effectively. Conducting employee performance reviews falls outside the typical scope of internal audit responsibilities, which center more on financial and operational processes rather than human resources