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CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

An internal audit team at Kaveri Pharma Ltd is asked by the board to examine how financial and operating information is identified, measured, classified and reported, and to make specific inquiry into individual items including detailed testing of transactions. Which type of internal audit activity is this?

This is examination of financial and operating information. SA 610 (Revised) describes it as reviewing the means used to identify, recognize, measure, classify and report information, with specific inquiry into individual items, including detailed testing of transactions, balances and procedures.

  1. AReview of compliance with laws and regulations
  2. BReview of operating activities for economy and efficiency
  3. CExamination of financial and operating informationCorrect
  4. DActivities relating to governance

Explanation

SA 610 (Revised) describes examination of financial and operating information as reviewing the means used to identify, recognize, measure, classify and report information, with specific inquiry into items and detailed testing. Operating activity review concerns economy, efficiency and effectiveness instead.

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