The process of analyzing and reviewing financial records to check the integrity of company financial reports is called __________?
Correct answer: A. internal audit
- A. internal audit
- B. external audit
- C. functional audit
- D. treasury audit
Explanation
Internal audit is conducted within an organization to review records, controls, and reporting processes for reliability and integrity. External audit is performed independently, mainly to express an opinion on the financial statements.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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