Which of the following statements is TRUE regarding internal auditors?

Internal auditors play a crucial role in an organization's governance and risk management processes. The statement that they provide independent assurance regarding internal controls is true because the primary function of internal auditors is to evaluate the effectiveness and efficiency of an organization’s internal controls. They assess the reliability of financial reporting, compliance with regulations, and the overall effectiveness of operations, ensuring that the organization's risk management strategies are in place and functioning correctly.

This independence is key; while they may work closely with management on operational improvements, their assessments and recommendations are meant to be unbiased, providing objective feedback on the adequacy of internal controls. This independent perspective helps organizations identify risks and improve processes without conflicts of interest.

In contrast, while the other statements might seem relevant in different contexts, they do not accurately represent the core function or relationship of internal auditors. For example, internal auditors do not typically supervise independent audits since independent audits are conducted by external auditors who are not part of the organization. They also collaborate with management to enhance efficiency instead of being restricted from such cooperation. Furthermore, internal auditors usually report to the audit committee or management rather than directly to external auditors, emphasizing their role within the organization rather than as a conduit to external oversight.