The board of directors has the ultimate responsibility for implementing the organization's governance system.
This includes overseeing the strategic direction and accountability mechanisms that align with good governance practices. The board ensures that governance structures and principles are clearly defined and effectively implemented, providing oversight to management activities. References: Corporate governance principles and guidelines, which often highlight the role of the board in setting and maintaining effective governance systems.

Internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities and the internal audit activity's plan. This applies to both assurance and consulting engagements, as they both require internal auditors to provide risk-based and objective assurance, advice, and insight to the organization. If the internal audit team lacks the necessary competencies for a specific engagement, they should obtain them through training, coaching, or external assistance.
References:
- CIA Exam Practice Questions - Certified Internal Auditor 2019
- Standard 1210 - Proficiency - The Institute of Internal Auditors or The IIA
- Mission of Internal Audit
- Standard 1210.A3 - The Institute of Internal Auditors or The IIA

The Internal Audit Activity's Quality Assurance and Improvement Program (QAIP) aims to ensure that the internal audit activities are carried out to the highest standards of quality and comply with the defined audit standards and practices. Sharing the results of the QAIP with the organization's external auditors is permissible and can enhance the understanding and reliance on audit processes. It aids in external audit planning and may contribute to more effective and streamlined audit practices across both internal and external teams.
Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The appropriate role for the internal audit activity in relation to an organization's risk management process is to provide assurance on the effectiveness of these processes. This involves evaluating whether risk management practices help the organization manage its risks within defined risk tolerance levels effectively and are aligned with the strategic goals. Internal audit should not be involved in designing controls or setting risk tolerance as this could impair their independence.
Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing

Management's decision to set a specific price below which liquid fuel shall not be sold, but instead stored, represents Risk avoidance. This approach involves eliminating the risk entirely by avoiding the activity that generates the risk. In this scenario, by deciding not to sell fuel below a certain price, management avoids the risk of losses due to price fluctuations.
ISO 31000: Risk Management Guidelines.
COSO ERM Framework.