Question

In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues EXCEPT?

1) Risk management
2) Internal controls
3) Financial reporting
4) Budgeting and forecasting

Answer 1

In an assurance engagement focused on treasury operations, an internal auditor must consider risk management, internal controls, and financial reporting, but not specifically budgeting and forecasting.

Step-by-step explanation:

In an assurance engagement of treasury operations, an internal auditor is not required to consider budgeting and forecasting. The primary responsibilities involve assessing risk management, reviewing the effectiveness of internal controls, and ensuring accurate financial reporting. These elements are crucial for providing assurance that treasury operations are being managed effectively and in accordance with company policies and regulatory requirements.

Risk management involves identifying and evaluating risks that could affect the organization's financial well-being. Internal controls are processes and procedures put in place to address identified risks and safeguard the organization's assets. Financial reporting concerns the accurate and timely communication of financial information to stakeholders.

While budgeting and forecasting are important financial functions, they are more concerned with planning and projecting future financial performance rather than providing assurance regarding the management of operations.