Which of the Following Statements Is True to Ensure Individual

question 7

Multiple Choice

Which of the following statements is true to ensure individual objectivity of internal auditors as per IIA Standards?

• A)Internal audit should be involved in the design of internal control systems, because of the knowledge of controls, but should not operate such systems.
• B)It is not appropriate for internal auditors to design, install or operate systems or write procedures manuals for systems.
• C)It is permissible for the internal auditor to be involved in designing and installing internal control systems (but not be involved in their operation), providing the head of internal audit reports to the board of directors or audit committee.
• D)The internal auditor should prepare procedures manuals for systems, but should not be involved in their design, installation or operation.

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Definitions:

Note Payable

A written promise to pay a certain amount of money, often including interest, on a specific date or upon demand.

Debt Settlement

A process in which a debtor negotiates with creditors to pay off a portion of their total debt in exchange for the creditor considering the debt as fully repaid.

Land

An asset representing real estate property that a company owns, which can include natural resources or buildings, used in the business operations or as an investment.

Bond Classifications

Categories of bonds based on issuer type, maturity, credit quality, and other factors influencing risk and return.