________ examines financial processes for efficiency, effectiveness, and adequate controls.

• A. Internal auditing
• B. Financial auditing
• C. IT auditing
• D. None of the above

Answer: (B)

Auditing financial information centers on the reliability of money-related data and the processes that produce it. Financial auditing specifically looks at how those financial processes operate and whether the controls around them are adequate to ensure accuracy, efficiency, and effective governance. By focusing on the procedures that generate financial statements and the controls that safeguard them, this type of audit assesses both performance (efficiency and effectiveness) and protection against misstatements or misuse. IT auditing targets technology controls, and internal auditing has a broader organizational scope beyond just financial processes, so the description best matches financial auditing.