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 to 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 is the most appropriate method for an organization to lower information risk related to its financial statements. The audit would be conducted by an independent auditor who would review the organization's financial statements, assess the internal controls, and issue an opinion on the fairness of the financial statements. This would increase the reliability and accuracy of the financial statements and reduce the risk of misstatement or fraud. Options A and B may be helpful, but they do not address the need for an independent third party to review and assess the financial statements. Option D is also relevant, but it focuses on operational effectiveness rather than specifically addressing the risk related to financial statements.

What Is the Most Appropriate Method for an Organization to Lower