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CS Professional · Internal and Forensic Audit · Emerging Issues and Challenges

Ganga Logistics Ltd wants its internal audit to cover ESG disclosures, as stakeholders increasingly expect assurance on non-financial information. This is an example of:

This shows internal audit scope expanding to non-financial and sustainability areas. Stakeholders want assurance over ESG data, so internal auditors increasingly review the processes and controls behind such disclosures, while still remaining an internal function.

  1. AExpansion of internal audit scope to non-financial and sustainability areasCorrect
  2. BReduction of audit scope to tax matters
  3. CConversion of internal audit into statutory audit
  4. DAbolition of risk assessment

Explanation

Internal audit scope is widening beyond financial controls to ESG, sustainability and other non-financial reporting. It remains an internal function and does not become a statutory audit, nor does it drop risk assessment.

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