Question

In an organization with a separate division that is primarily responsible for the prevention of fraud, the internal audit activity is responsible for

A. Examining and evaluating the adequacy and effectiveness of that division's actions taken to prevent fraud.
B. Controlling that division's fraud prevention activities.
C. Establishing and maintaining that division's system of internal control.
D. Planning that division's fraud prevention activities.I

Answer 1

The internal audit is responsible for examining and evaluating the fraud prevention division's effectiveness and adequacy in an organization, not controlling, establishing, or planning its activities.

Step-by-step explanation:

The question pertains to the role of the internal audit function within an organization, particularly in relation to a separately operating division that is tasked with preventing fraud. In the context of internal controls and fraud prevention, the correct role of the internal audit activity is Examining and evaluating the adequacy and effectiveness of the measures taken by that division to prevent fraud. The internal audit does not control, establish, or plan the division's activities but rather provides an objective assessment of how well the division is performing its duties in preventing fraud.