An Internal Auditor Is Trying to Assess Control Risk and the Effectiveness

question 82

Multiple Choice

An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?

• A) Interviewing the organization's employees.
• B) Observing the organization's operations.
• C) Reading the board's minutes.
• D) Inspecting manuals and documents.

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Definitions:

Decision Variables

The variables in a mathematical model that decision makers will seek to determine or control.

Optimal Values

The most favorable or efficient values that lead to the best outcome in a given situation or model.

Fabrication Labor Constraint

A limitation in the manufacturing process related to the amount of labor available for fabricating products.

Right-hand Sides

In linear programming, these are the values on the right side of the equation, representing the constraints or limits of the resources.