Explanation:

- Understanding Internal Auditor Appointments:

- An internal auditor is appointed to evaluate and improve the effectiveness of risk management, control, and governance processes within an organization.

- The appointment of the internal auditor is typically an internal decision made to align with the strategic needs and goals of the company.

- Option Analysis:

- Option 1 - Management: Correct, as management is responsible for appointing the internal auditor to ensure the organization's operations are conducted efficiently and effectively.

- Option 2 - Shareholders: Incorrect, as shareholders are not involved in day-to-day operational decisions such as appointing internal auditors.

- Option 3 - Government: Incorrect, as the government does not appoint internal auditors; their role is more regulatory.

- Option 4 - Stock Exchange: Incorrect, as stock exchanges do not appoint auditors.

- The correct answer is Management from Option 1.