Regarding the Internal Audit Function,which of the Following Statements Is

question 15

Multiple Choice

Regarding the internal audit function,which of the following statements is true?

• A)Since many internal auditors have accounting backgrounds,the internal audit function should ideally be included within a company's accounting subsystem
• B)It is not proper for internal auditors to perform a fraud investigation within any part of their company's system
• C)Because of the independence of external auditors,they should never accept previous work of evaluating controls performed by a company's internal auditors
• D)Within a company's system,it is preferable to establish the internal audit function as a separate subsystem

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Definitions:

Life Insurance

A policy that provides financial compensation to a designated beneficiary upon the death of the insured individual.

Insurance Policy

An insurance policy is a contract between an insurer and the insured, detailing the terms under which the insurer agrees to compensate for specific financial losses or damages.

Utmost Good Faith

A legal doctrine requiring parties to act with honesty and not mislead or withhold information from each other.

Co-insurance Clause

A provision in insurance policies that divides the risk of loss between the insurer and the insured, based on a fixed percentage of the value of the insured item.