Asked by Ke'Darius Thornton on Jun 17, 2024
Verified
When a firm uses internal auditors, it is adhering to which of the following internal control elements?
A) risk assessment
B) monitoring
C) proofs and security measures
D) information and communication
Internal Auditors
Professionals employed by an organization to perform audits on the efficacy and efficiency of its operations, ensuring adherence to laws and policies.
Internal Control Elements
Components of a framework designed to ensure the effectiveness and efficiency of operations, reliable financial reporting, and compliance with laws and regulations.
- Identify the fundamental principles and goals of internal control mechanisms.
- Understand the elements and importance of a robust internal control environment.
Verified Answer
BS
Bhalwinder SinghJun 19, 2024
Final Answer :
B
Explanation :
Internal auditors are part of the monitoring component of internal control, which involves reviewing and assessing the effectiveness of the other internal control elements. They are responsible for reviewing financial information, evaluating the internal control systems, and identifying areas where improvements can be made. Therefore, the use of internal auditors helps a firm to adhere to the monitoring element of internal control.
Learning Objectives
- Identify the fundamental principles and goals of internal control mechanisms.
- Understand the elements and importance of a robust internal control environment.