The Primary Role of an Auditor Is To

question 22

Multiple Choice

The primary role of an auditor is to:

• A) review accounting systems and internal controls.
• B) detect fraud.
• C) ensure that every transaction is correct.
• D) ensure that there is no fraud and that all transactions are correct.

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Definitions:

Strategic Planning

Developing long-term actions to achieve a company’s objectives.

Decentralization

The distribution of decision-making powers away from a central authority to lower or local levels of an organization, government, or entity.

Operative Costs

Expenses associated with the day-to-day operations of a business, including salaries, rent, and utilities.

Franchise

A type of license that a party (franchisee) acquires to allow them to have access to a business's (franchisor) proprietary knowledge, processes, and trademarks to sell a product or provide a service under the business's name.