An Internal Auditor Has Been Asked to Participate in an Advisory

question 25

Multiple Choice

An internal auditor has been asked to participate in an advisory capacity to assist a committee in redesigning the organization's current financial reports to provide better information to management and the board. Which of the following actions on the part of the auditor would provide the greatest value to this project?

• A) The internal auditor has a set of generic report templates from a former project and presents them to the group because they worked so well for the previous employer.
• B) The internal auditor interviews each stakeholder and documents the requirements and preferences of each and creates a report template that meets as many of the requirements and preferences as possible.
• C) The internal auditor gathers the stakeholder group and holds a brainstorming session where they generate report requirements and preferences and then rank them in order of importance.
• D) The internal auditor undertakes a project to gather report templates and formats from other organizations in the same line of business and presents them all to the group for review.

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Definitions:

Profit-Maximizing

The strategy employed by an enterprise to determine the price and output that yields the maximum profit.

Loss-Minimizing

A strategy or approach aimed at reducing the amount of losses an individual or organization may incur.

Long-Term Contracts

Agreements between parties that extend over a significant period of time, often used to ensure stability in supply, demand, and pricing conditions.

Licenses

Legal permissions granted by authorities to individuals or companies to engage in certain activities or businesses.