Which of the following exemplifies the role of an internal auditor?
A. Chloe classifies the transactions of Pole Star, Inc. and records it in the books of accounts.
B. Chloe reports on the sufficiency of the insurance policies taken out on the assets of Pole Star, Inc.
C. Chloe reports on the financial position of Pole Star, Inc. at the end of the accounting period.
D. Chloe assists the management of Pole Star, Inc. to determine the taxes and tax benefits..
Answer:B
Which of the following exemplifies the role of an internal auditor?
A. Chloe classifies the transactions of Pole Star, Inc. and records it in the books of accounts. B. Chloe reports on the sufficiency of the insurance policies taken out on the assets of Pole Star, Inc. C. Chloe reports on the financial position of Pole Star, Inc. at the end of the accounting period. D. Chloe assists the management of Pole Star, Inc. to determine the taxes and tax benefits..
Explanation: B) The internal auditor's function is to report on the adequacy of internal controls, the accuracy and propriety of transactions, the extent to which assets are accounted for and safeguarded, and the level of compliance with a company's internal policies as well as external laws and regulations.