Tuesday, November 10, 2015

CIA Part 1 - Q2

2. The function of internal auditing, as related to internal financial reports, would be to

a. Ensure compliance with reporting procedures.
b. Review the expenditure items and match each item with the expenses incurred.
c. Determine if there are any employees expending funds without authorization.
d. Identify inadequate controls that increase the likelihood of unauthorized expenditures.



d. Correct. Internal auditors are responsible for identifying inadequate controls, for appraising  managerial effectiveness, and the pinpointing common risks.

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