Who is considered an internal auditor?

An internal auditor plays a critical role within an organization by assessing and improving the effectiveness of risk management, control, and governance processes. They operate from within the company and are tasked with monitoring compliance with internal policies and procedures, as well as ensuring that operations are efficient and effective. This role involves evaluating the adequacy of internal controls, identifying areas for improvement, and ensuring that the organization is adhering to laws and regulations.

In contrast, individuals who prepare tax documents, conduct external financial audits, or provide financial advisory services from an external perspective do not fulfill the role of an internal auditor. Tax preparers focus on documenting tax obligations, external auditors assess financial statements for accuracy from an outside viewpoint, and consultants offer specialized advice but are not embedded within the organization to monitor and evaluate its internal controls. Thus, the definition of an internal auditor aligns specifically with option B, highlighting their function within the organization.