a. Internal audit refers to an independent, objective assurance and consulting activity that adds value to and improves an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditors work within the organization and focus on internal control systems, ensuring efficiency and compliance with internal policies.

b.
The following weaknesses exist in the structure of Good Weather Nigeria Plc:

• Inadequate staffing: The internal audit function only has three staff members, which is inadequate for the size and complexity of the company’s operations across six locations. This affects their ability to perform audits effectively.
• Appointment of Chief Internal Auditor: The Chief Internal Auditor was appointed by the Executive Finance Director, which poses a significant threat to the independence of the internal audit function. The internal auditor should be appointed by the board or audit committee, not by a senior executive involved in financial decision-making.
• Familiarity Threat: The internal audit staff have remained in the unit for over eight years without rotation. This can lead to over-familiarity with the company’s operations, reducing the effectiveness of the audits and increasing the risk of bias.
• Reporting Line: The Chief Internal Auditor reports directly to the Executive Finance Director, which compromises the independence and objectivity of the audit reports. The internal auditor should ideally report to the audit committee to maintain independence from management.

c.
The differences between the roles of an internal auditor and an external auditor are:

• Appointment: Internal auditors are appointed by the company’s management, while external auditors are appointed by the shareholders.
• Scope of Work: Internal auditors focus on evaluating internal controls and compliance within the organization, whereas external auditors focus on expressing an opinion on the truth and fairness of the financial statements.
• Reporting Line: Internal auditors report to the audit committee or senior management, while external auditors report to the shareholders.
• Objective: Internal auditors provide assurance on the effectiveness of internal controls, while external auditors provide assurance on the accuracy of financial reporting.
• Frequency: Internal audits are conducted throughout the year as part of continuous oversight, while external audits are typically conducted annually.