CIMA BA3 · Chapter 8 · Question 4 of 10
Which of the following statements about internal audit is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Internal auditors usually report to management or an audit committee and review the effectiveness of internal controls
Explanation
Internal audit is a function set up by management, often staffed by employees, which reviews controls, risk management and operations and reports to management or the audit committee. Independence from the company, appointment by shareholders and the true and fair opinion are features of external audit, and internal audit is not required by law for all companies.
More Control of accounting systems MCQs
- Q6Which of the following is best described as a detective control rather than a preventive control?
- Q7Which of the following is an authorisation control over purchases?
- Q8Which of the following is an example of an access control in a computerised accounting system?
- Q9Who has the primary responsibility for preventing and detecting fraud in a company?
- Q10Which of the following is a limitation of any system of internal control?