The function of internal auditors is to:

• A. Regulate corporate governance
• B. Appoint the board members
• C. Audit external financial statements
• D. Evaluate and improve internal controls, primarily for management

Answer: (D)

The main idea being tested is the role of an internal audit function within an organization. Internal auditors are tasked with evaluating the design and operating effectiveness of internal controls and governance processes, and driving improvements to help management achieve objectives. They provide independent, objective assurance and advisory services to strengthen risk management, control, and governance. This is why the function is described as evaluating and improving internal controls mainly for management. The other options don’t fit because internal auditors do not regulate corporate governance, appoint board members, or audit external financial statements—that last task belongs to external auditors.