What is true regarding the requirement for internal auditors to use criteria established by management?

The requirement for internal auditors to use criteria established by management emphasizes the collaborative relationship between internal auditors and organizational management. When internal auditors use management's established criteria, they align their assessment with the organization's objectives, performance expectations, and standards. This practice ensures that the audit focuses on relevant and practical benchmarks that management considers essential for measuring effectiveness and efficiency.

If the established criteria are deemed adequate, they provide a framework for evaluating processes, controls, and overall performance. This not only enhances the relevance of the audit findings but also fosters trust and credibility between management and the internal audit function. Furthermore, using management's criteria allows auditors to assess compliance and performance against the goals set forth by those in leadership, which is integral to the value that internal audits can provide.

Other options fail to accurately represent the relationship between internal auditors and management. The idea that internal auditors cannot use management criteria overlooks the collaborative aspect essential to effective auditing. While internal auditors may set their own criteria if necessary, this approach could risk their evaluations being less aligned with the management's objectives. Likewise, requiring criteria to be validated externally could be impractical and might not reflect the specific needs and circumstances of the organization as determined by management.