What is the role of internal auditors in relation to external audits?

• A. They perform all external audit procedures.
• B. They issue the external auditor's report.
• C. They provide independent assurance but not on financial statements.
• D. They assess and report on internal control to improve operations.

Answer: (D)

Internal auditors focus on evaluating and improving internal controls and governance processes. Their independence, often reporting to the audit committee or board, gives credible assurance about how well controls operate to safeguard assets, support reliable reporting, and enhance efficiency. In relation to external audits, they help by assessing controls and providing evidence that external auditors can rely on, but they do not perform external audit procedures or issue the external auditor’s report. Their primary contribution is independent assurance on internal control to improve operations, which makes the option describing that role the best fit.