The correct answer is: B. Continuous audit
Concurrent audit is a type of audit that is conducted simultaneously with the recording of transactions. It is a part of the continuous audit system, which is a system of auditing that uses continuous monitoring and analysis of data to identify and prevent errors and fraud.
The internal check system is a system of controls that is designed to prevent errors and fraud. It is not a type of audit.
The internal audit system is a system of audits that is conducted by an independent auditor to assess the effectiveness of the internal control system. It is not a type of audit.
Explanation of each option:
- A. Internal check system
The internal check system is a system of controls that is designed to prevent errors and fraud. It is not a type of audit. The internal check system includes a variety of controls, such as segregation of duties, authorization controls, and reconciliation controls.
- B. Continuous audit
Continuous audit is a type of audit that is conducted simultaneously with the recording of transactions. It is a part of the continuous audit system, which is a system of auditing that uses continuous monitoring and analysis of data to identify and prevent errors and fraud. Continuous audit is a more efficient and effective way to audit than traditional audit, which is conducted periodically.
- C. Internal audit system
The internal audit system is a system of audits that is conducted by an independent auditor to assess the effectiveness of the internal control system. It is not a type of audit. The internal audit system is designed to provide assurance to management and the board of directors that the internal control system is effective in preventing and detecting errors and fraud.
- D. None of these
The correct answer is: B. Continuous audit