Question

An organization's "internal auditors" are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should first report the concern to:

A. The regulatory agency.
B. Plant management.
C. The board of directors
D. The "risk management function" of the company

Answer 1

B. Plant management.

Step-by-step explanation:

Intern auditors are employees of an organization saddled with the responsibility of reviewing the organization internal controls, policy documents and accounting processes. One of the aim of having internal auditor is to ensure that the organization is not at risk of financial loss, breach of government regulations.etc.

The role internal auditor is to review operations, systems, policies whether they conform with laws and regulations, data collection and financial reporting.

Where an internal auditor notices a serious problem identified with emission, the first report should be made to plant management.

This is to ensure that the anomaly observed is promptly corrected otherwise would form part of the final report to be presented to the board of directors.