Dave's ESL Cafe's Student Discussion Forums

[shvetsov2005]

I am going through a test. Can you help me understand the meaning?
Question:

A manager informs the quality performance analyst responsible for a process that an internal audit will be done on that process. What does this mean about the people conducting the audit?

1.All have a vested interest in the audit results

2. They could be represented by an external supplier

3. They will be assigned by and report to the quality performance analyst

4. They are employed by the same company as the quality performance analyst

Correct answer is 4. Do you understand why? Can you explain?

Alexander.

[asterix]

It is correct because an internal audit is done within the company by people employed by the company. So if Honda does an internal audit the people doing the audit work for Honda. An external audit is done by either a company that specialises in audits, such as chartered accountants, or the government (tax department, possibly).