Okay, let's think this through step-by-step. The audit committee should have oversight and control over the internal audit function to ensure its independence. I think approving the budget and resources would be a good way to do that.
I've seen this setting before, but I can't quite remember what it does. I think it has to do with bypassing normal access controls, but I'm not 100% sure. I'll make an educated guess, but I'm not super confident in my answer.
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