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62) Internal auditors are responsible to:A) the board of directors.B) management.C) both A and B.D) neither A nor B.Answer: C63) Which of the following is nota similarity between external and internal auditors?64) External auditors would consider internal auditors effective if they are:65) An audit designed to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a material and direct effect on the financial statements would be called a(n):66) Which one of the following is nota major difference between operational and financial auditing?A) Purpose of the auditB) Distribution of the reportC) Testing the effectiveness of internal controlsD) Inclusion of nonfinancial areasAnswer: C67) Effective internal controls are designed to help organizations achieve which of the following objectives?68) Compilation reports may be of all but which of the following types?
69) The statement that "We are not aware of any material modifications that should be made to the accompanying financial statements" expresses which of the following?70) The concept of limited assurance is provided for in which of the following engagements?A) AuditB) ReviewC) CompilationD) Agreed-upon proceduresAnswer: B71) Assurance provided by a review is substantially less than an audit. Which of the following statements is true regarding these services?