Final answer:
Internal auditors should review the means of physically safeguarding assets from losses arising from theft, damage, or natural disasters. This involves evaluating security measures, such as alarms, access controls, and fire detection systems.
Step-by-step explanation:
Internal auditors should review the means of physically safeguarding assets from losses arising from a variety of risks, such as theft, damage, or natural disasters. This involves evaluating the security measures in place to protect the physical assets, such as buildings, equipment, and inventory.
Examples of physical safeguards include:
- Installing security systems, such as alarms and surveillance cameras, to deter theft or unauthorized access.
- Implementing access controls, such as locked doors or keycard systems, to restrict entry to certain areas.
- Using safes, vaults, or secure storage areas to protect valuable items.
- Maintaining fire detection and suppression systems, such as fire sprinklers, to minimize the risk of damage from fires.
By reviewing these physical safeguards, internal auditors ensure that the assets are adequately protected and minimize the risk of potential losses.