The following questions deal with internal auditing departments and their responsibilities. Choose the best response.

a. Which of the following is generally considered to be a major reason for establishing an internal auditing function?

(1) To ensure that operating activities comply with the policies, plans, and procedures established by management

(2) To safeguard resources entrusted to the organization

(3) To ensure the accuracy, reliability, and timeliness of financial and operating data used in management's decision making

(4) To relieve overburdened management of the responsibility for establishing effective internal control

b. Which of the following is generally considered to be the primary purpose of an internal auditor's evaluation of the adequacy of internal control?

(1) To determine if internal control is functioning as intended by management

(2) To determine if internal controls provide reasonable assurance that the objectives and goals of the organization will be met in an efficient and economical manner

(3) To determine the extent of reliance that the internal auditor can place on internal controls in the process of evaluating the financial statements prepared by the organization

(4) To determine if all risks and exposures of the enterprise have been reduced or eliminated by internal controls