Fraud was suspected in the IT department of Company ABC.The CEO called on the VP of Finance to do a complete review of the IT department financial processes.What is the name for this review activity?
A)internal controllership
B)external controllership
C)internal auditing
D)external auditing

Question

Quizplus · Accepted Answer

The review activity described in the scenario is an example of internal auditing, which involves assessing and evaluating a company's financial processes and controls to identify potential fraud or inefficiencies. Internal controllership usually refers to the processes and procedures implemented by a company's management to ensure the accuracy and reliability of financial reporting, while external controllership and external auditing both involve having an independent third party review a company's financial processes and controls, which is not the case in this scenario. Therefore, the best choice is C, internal auditing.

Fraud Was Suspected in the IT Department of Company ABC