Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 50

Which of the following would be the least desirable criteria against which to judge current operations of a company's treasury function?

Answer options

• A. The operations of the treasury function as documented during the last audit engagement.
• B. Company policies and procedures delegating authority and assigning responsibilities.
• C. Finance textbook illustrations of generally accepted good treasury function practices.
• D. Codification of best practices of the treasury function in relevant industries.

Correct answer: A

Explanation

Option A is the least desirable as it relies on outdated audit documentation, which may not reflect the current effectiveness of the treasury function. Options B, C, and D provide more relevant and updated criteria, focusing on established practices, policies, and industry standards that are crucial for evaluating treasury operations.