________ examines organizational units for efficiency, effectiveness, and adequate controls.

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

Answer: (A)

The main idea is evaluating how organizational units operate to ensure they are efficient, effective, and properly controlled. Internal auditing is the activity that looks across the organization at various units and processes to test performance, assess risk, and verify that internal controls are in place and working as intended. It provides assurance to management and governance bodies that operations are achieving objectives while controlling for fraud, waste, and errors.

Financial auditing, by contrast, concentrates on the accuracy and completeness of financial statements and compliance with accounting rules. IT auditing focuses on information technology controls, security, and data integrity. Because the scenario describes examining organizational units for efficiency, effectiveness, and adequate controls, internal auditing is the best fit.