During the management seminar that you attended recently, you heard the following comments made by Kailash, the president of ABS & Co:

"I relatively not understand what this whole army of internal auditors is doing in the private sector. They are certainly useful in the public sector, where they must make sure that a whole multitude of laws, regulations, and directives are followed to the letter. But the situation is quite different in private business, where profit is an important source of motivation. After giving it a considerable thought, do not quite see what positive contribution a group of internal auditors could make to our company or what management could expect from this function. I do not see how internal auditing could contribute in terms of improving the quality of management in our company. We already spend a fortune on the annual audit of our financial statements, and our external auditors are very competent. Furthermore, quite opposite to internal auditors they are independent from management. In any event, the work has done by our external auditors gives us assurance that everything is well managed in our company and that we are well protected against fraud. Otherwise, they would not be able to give an unqualified opinion on our financial statements year after year".

You are required to critically argue on the statements of Kailash regarding internal auditing.