Which activity is classified under Systems and Controls functions?

The classification of internal audit under Systems and Controls functions is based on its role in ensuring that an organization's internal processes are effective and comply with regulatory standards. Internal audit systematically reviews and evaluates the adequacy and effectiveness of risk management, control, and governance processes within the organization. This function helps identify areas of improvement, ensures compliance with regulations, and fosters accountability, all of which are critical components of a robust systems and controls framework.

On the other hand, treasury management, investment advisory, and customer service primarily focus on operational aspects and client relations rather than on the oversight mechanisms that safeguard the integrity of the organization’s control systems. Treasury management involves managing financial assets and liabilities, investment advisory pertains to guiding clients on investment opportunities, and customer service deals with client support and satisfaction. While these activities are essential for the smooth functioning of a business, they do not inherently involve the same level of scrutiny and oversight that internal audit provides in relation to systems and controls.