Which statement accurately describes internal audits?

• A. They provide an opinion on the district's financial statements
• B. They assess internal controls, risk management, and governance processes
• C. They replace external audits
• D. They are not used in districts

Answer: (B)

Internal audits provide independent assurance and advisory work focused on how well an organization manages its risks and controls. The main purpose is to assess internal controls, risk management, and governance processes, not to issue an opinion on financial statements. By examining control activities, policy compliance, and governance practices, internal audits help identify weaknesses and recommend improvements to strengthen operations and oversight. They do not replace external audits, and districts commonly use internal audit functions to support governance.