A firm conducting an internal audit would assess
A)its own financial stability.
B)suppliers.
C)potential partners.
D)potential merger targets.
E)potential acquisitions.

Question

Quizplus · Accepted Answer

An internal audit is an evaluation of a company's internal controls, risk management, and governance processes. Therefore, a firm conducting an internal audit would assess its own financial stability, which includes reviewing its financial statements, balance sheet, income statement, cash flow statement, and other financial reports to ensure they accurately reflect the company's financial position. The other options listed (suppliers, potential partners, potential merger targets, potential acquisitions) would be factors to consider in external audits or due diligence processes when considering potential business transactions.

A Firm Conducting an Internal Audit Would Assess