A Company Engaged a Third-Party Audit Firm to Provide Regular

question 185

Multiple Choice

A company engaged a third-party audit firm to provide regular financial oversight for regulatory compliance and requested a project manager to work with the firm. The PMO declines to assign a project manager and refers to another department within the company. Which of the following is MOST likely the reason for this?

• A) There are not enough project managers available for additional work
• B) The work does not align with the strategic objectives of the organization
• C) This is ongoing work the vendor has been hired to perform
• D) The third party has a reputation for expertise in this area

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Definitions:

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a loan.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay according to the agreed terms.

Enforceable Security Interest

A legal claim or lien on collateral that secures the fulfillment of a debt or obligation, which can be enforced in court.

Escrow

A financial arrangement where a third-party holds and regulates payment of the funds required for two parties involved in a given transaction, ensuring fair and secure dealing.