Final answer:
Auditors play a vital role in ensuring organizational compliance and detecting fraud through their questioning, supporting the areas of compliance and investigation.
Step-by-step explanation:
True: Auditors indeed ask questions that are instrumental in supporting functional areas of compliance, fraud detection, and investigation. The purpose of these questions is to understand and evaluate the organization's internal controls, processes, and systems in light of regulatory requirements and to identify any signs of misconduct or fraudulent activities. By doing so, auditors can help an organization mitigate risks associated with non-compliance and financial misrepresentation.
Auditors do ask questions that support functional areas of compliance, fraud detection, and investigation.
In the area of compliance, auditors may ask questions to ensure that a company is following laws, regulations, and internal policies. For example, they may inquire about the existence of controls and procedures to prevent fraud.
In the realm of fraud detection and investigation, auditors may ask questions to identify potential risks and anomalies. They may inquire about specific transactions, patterns, or behaviors that could indicate fraudulent activities.
Overall, auditors play a crucial role in identifying and addressing compliance issues and potential fraud within an organization, and their questions help gather the necessary information to support these functional areas.