Question

By observing, testing and accessing, an auditor examines the system of ____________.

• A. Internal Audit
• B. Internal control
• C. Continuous Audit
• D. Statutory Audit

Answer 1

The correct option is B Internal control

By observing, testing, and accessing an auditor examines the system of internal control. The internal control system is the system that is set up by the management and the authenticity of the same is checked by the auditor. Setting up an efficient ICS is important for increasing the efficiency and effectiveness of the audit.