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Which of the following is considered the primary engagement objective by both the chief audit executive and senior management?

1) Ensuring compliance with laws and regulations
2) Evaluating the effectiveness and efficiency of operations
3) Assessing the reliability and integrity of financial and operational information
4) Safeguarding assets against loss, theft, and misuse

User Gnuchu
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Final answer:

The primary engagement objective for both the chief audit executive and senior management is ensuring the reliability and integrity of financial and operational information, essential for corporate governance and informed decision-making.

Step-by-step explanation:

The question seeks to determine the primary engagement objective for both the chief audit executive and senior management in a corporate setting. Although all the options presented are important aspects of a comprehensive audit, the most fundamental goal aligns closely with guaranteeing the reliability and integrity of financial and operational information. This is crucial because auditors, senior management, the board of directors, and shareholders rely on accurate information to make informed decisions. Events such as the failure of Lehman Brothers highlight the significance of accurate financial reporting, as poor corporate governance and oversight can result in misinformation to investors and stakeholders. Moreover, institutions like the Government Accountability Office (GAO) emphasize the importance of fact-based and nonpartisan verification of information to ensure transparency and accountability within governmental and corporate entities.

User Lacop
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