Audit review and analysis should be conducted:

• A. exclusively at the end of the fiscal year
• B. only by external auditors
• C. on a regular and systematic basis to detect and prevent fraud
• D. only when fraud is suspected or reported

Answer: (C)

Verified step by step guidance

1. Understand the purpose of audit review and analysis: It is a process designed to ensure the accuracy and integrity of financial records, detect errors, and prevent fraud.
2. Recognize the importance of conducting audits regularly: Audits should not be limited to specific events like the end of the fiscal year or suspicion of fraud. Regular and systematic audits help maintain financial transparency and compliance.
3. Differentiate between internal and external audits: While external auditors provide an independent review, internal audits conducted by the organization itself are equally important for ongoing monitoring and control.
4. Consider the role of fraud prevention: Regular audits are proactive measures to identify discrepancies and prevent fraudulent activities before they escalate.
5. Conclude that audit review and analysis should be conducted on a regular and systematic basis, as this approach ensures continuous oversight and strengthens the organization's financial accountability.