Risks Related to Assets/liability Management That Auditors Should Be Aware

question 364

Multiple Choice

Risks related to assets/liability management that auditors should be aware of include all of the following EXCEPT:

• A) Deficient information processing, accounting, reconcilement, and reporting systems in relation to transaction volume and complexity
• B) Failure to effectively manage third-party vendors
• C) Failure to use legal counsel effectively
• D) Deficiencies in the integration of purchase-oriented businesses with the responsibilities associated with fiduciary relationships

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Definitions:

Functional Level

Pertains to the specific, operational areas within an organization, including departments like marketing, finance, HR, and operations, focusing on specialized tasks and strategies.

Specialists

Experts or organizations highly skilled in a specific and narrow area of a field or industry.

Functional Level

Refers to the operational and tactical aspects of an organization, focusing on specific roles or departments such as marketing or finance.

Marketing Department

A division within a company that focuses on developing strategies to promote, sell, and distribute products or services effectively.