Which of the following statements is a characteristic of an internal audit?
A. It studies the basic operations of a company in order to identify problem areas.
B. It furnishes the regulatory agencies with information on a company's financial status and operations.
C. It functions primarily as a service to management for the improvement of its financial controls.
D. It employs an outside certified public accountant to verify the records and financial statements of a company.
Answer: C
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