PCA Corporation maintains its fixed asset records in an Excel spreadsheet, as well as in its general ledger software. An internal auditor for PCA downloaded the Excel spreadsheet, then verified the information in it against both the general ledger software and the actual fixed assets in use. Which of the following statements is most true?
A)Internal auditors should not be viewed as a form of internal control.
B)PCA is legally required to follow the CoBIT accountability framework, which includes internal auditors, to meet the information criterion of compliance.
C)The internal auditor's actions help PCA achieve integrity in its information.
D)Information about fixed assets is confidential; the internal auditor's actions conflict with the information criterion of confidentiality.

Question

Quizplus · Accepted Answer

The internal auditor's actions help ensure the accuracy and completeness of PCA's fixed asset records, contributing to the integrity of its information. As long as the auditor is authorized to access and handle the confidential information, their actions do not conflict with the criterion of confidentiality. While internal auditors may not be the only form of internal control, they are a valuable tool for ensuring compliance and identifying areas for improvement. CoBIT is a control framework that guides the design and implementation of IT governance processes, but it is not a legal requirement for all organizations.

PCA Corporation Maintains Its Fixed Asset Records in an Excel