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Fraud is typically classified as:
A. Market risk
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D. Operational risk
Answer: D

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An internal auditor is evaluating controls over the purchasing function. The function includes the material control department, the purchasing department, and the receiving department. Which of the following is true regarding the presentation of the process flow among the three departments?
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B. A vertical flowchart of each department, showing inputs at the top and outputs at the bottom, would be most useful.
C. Both a flowchart and narratives are needed due to the number of departments involved.
D. Flowcharts are not useful for documenting process flow.
Answer: A


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