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From a modern internal auditing perspective, which one of the following statements represents the most important benefit of

an internal auditing activity to management?

A. Assurance that published financial statements are correct.

B. Assurance that fraudulent activities will be detected.

C. Assurance that the organization is complying with legal requirements.

D. Assurance that there is reasonable control over day-to-day operations.

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Question added by Deleted user
Date Posted: 2015/02/27
Shabbir Hussain
by Shabbir Hussain , General Accountant , Fiscal

For Banks & Micro Finance;

C. Assurance that the organization is complying with legal requirements.

for Companies & Corporate Sector

B. Assurance that fraudulent activities will be detected.

SYED IFTIKHAR HUSSAIN SHAH
by SYED IFTIKHAR HUSSAIN SHAH , DUTY MANAGER, FRONT DESK OFFICER, CONTROLLER TRANSPORT DESK, , SAMA SAMA INT’L

Detection of Fraudulent Activiies

To check the proper compliance of bye laws

Reasonable control over day to day operations

Brendan O'Hagan
by Brendan O'Hagan , Director RBS Capital Resolution Ireland , AIB Bank, Rabobank, Ulster Bank/RBS

Option C as it gives Senior Management of an organisation the comfort that they are operating within legal boundaries in its jurisdication.

ahmed aldhurafi
by ahmed aldhurafi , مراجع داخلي ومراقب مالي , شركة تأمين

Answer C is suitable to Banks  

Answer D  is suitable to other companies

 

 

Rashid Mahmood
by Rashid Mahmood , Manager , Mudassar Cotton industry

B. Assurance that fraudulent activities will be detected

Imran Adwani
by Imran Adwani , Head of Internal Audit , Abdulla Bin Zayed Investment Group

Option "d" is the most important objective/ benefit of an internal audit.

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