Which of the following is true of an internal auditor?
A. The responsibilities of an internal auditor extend beyond the processing functions of a transactional accountant.
B. A qualified opinion from the internal auditor adds credibility to the organization and its financial statements.
C. The internal auditor issues reports that are used by the stakeholders and other users to understand the financial statements of an organization.
D. The budgets, cash flow statements, income statement, and balance sheet of an organization is prepared by the internal auditor.
Answer:A
Which of the following is true of an internal auditor?
A. The responsibilities of an internal auditor extend beyond the processing functions of a transactional accountant. B. A qualified opinion from the internal auditor adds credibility to the organization and its financial statements. C. The internal auditor issues reports that are used by the stakeholders and other users to understand the financial statements of an organization. D. The budgets, cash flow statements, income statement, and balance sheet of an organization is prepared by the internal auditor.
Explanation: A) Aside from management, the first line of defense against accounting failures within an organization is the internal auditor, whose responsibilities extend beyond the processing functions of a transactional accountant.