Which One of the Following Statements Describes the Role of Internal

question 15

Multiple Choice

Which one of the following statements describes the role of internal auditors?

• A) To set up the internal control system to prevent and detect fraud and error.
• B) To assess the effectiveness of the risk management, control and governance procedures.
• C) To focus on the truth and fairness of the annual report and financial statements and their compliance with the requirements of both the Companies Act 2006 and of IFRS.
• D) To present a subjective view of all an organisation's activities and operations.

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Definitions:

Negative Income Tax

A proposed system of social security that guarantees a minimum income to all, where those earning below a certain amount receive supplemental pay from the government instead of paying taxes.

Income Subsidy

An income subsidy is a government-provided financial assistance program intended to boost an individual's income to a level sufficient for meeting basic living standards.

Negative Income Tax

A program where the government provides additional income to those who earn under a specific threshold, rather than collecting taxes from them.

Tax Liability

Tax liability is the total amount of tax that an individual or organization is legally obligated to pay to a taxing authority based on earnings, property ownership, or other taxable conditions.