What is the most appropriate method for an organization to lower information risk related to its financial statements?
A) Have good bookkeeping work completed on the accounts.
B) Use a high quality software package keep track of information.
C) Have an independent financial statement audit conducted.
D) Have an independent operational audit conducted on effectiveness.

Question

Quizplus · Accepted Answer

Having an independent financial statement audit conducted will provide an objective evaluation of the financial statements and help identify any errors or irregularities. This can greatly reduce the risk of inaccuracies or fraudulent activity going undetected. Good bookkeeping and high quality software help, but an independent audit provides an extra layer of assurance. An operational audit (choice D) may identify inefficiencies or weaknesses in processes, but it may not necessarily address information risk related to financial statements.

What Is the Most Appropriate Method for an Organization to Lower