What does the internal audit procedure define?

The correct answer highlights that the internal audit procedure defines the responsibilities for internal audit, including the main rules. This is fundamental as it outlines who is accountable for conducting audits, establishes the authority of the auditors, and sets the expectations for their performance. By defining these roles and responsibilities, the procedure ensures that auditing activities are conducted consistently, thoroughly, and in alignment with organizational objectives and compliance requirements.

A well-defined internal audit procedure serves as a guiding framework that not only helps to facilitate the auditing process but also reinforces the importance of accountability and integrity within the organization. It promotes awareness of the internal audit function and ensures all stakeholders understand their roles in supporting audit activities, ultimately contributing to effective governance and risk management.

In contrast, while understanding financial aspects, timelines, and training requirements are important for the overall audit management process, they do not encompass the core focus of what the internal audit procedure fundamentally defines.