Comprehensive and Detailed Explanation:
The current ratio = Current Assets ÷ Current Liabilities. To increase it, either current assets must rise or current liabilities must decrease.
* Option A has no effect because it simply shifts funds between accounts.
* Option B increases current assets (inventory) without adding current liabilities, since the loan is long- term, thus improving the ratio.
* Option C (leasing) affects long-term liabilities, not current assets.
* Option D converts receivables to cash, which keeps current assets unchanged in total.
Therefore, the only option that improves the current ratio is purchasing inventory using long-term loans (B), since it raises current assets without raising current liabilities.

Internal audit activities include evaluating the effectiveness and efficiency of internal controls, and part of this process involves analyzing and advising on the cost-benefit relationship of control activities.
This function helps ensure that the internal controls in place are not only effective in mitigating risks but are also economically justified

The flowchart indicates that different individuals are responsible for various stages of the bank reconciliation process. The Treasury Accountant posts payments and performs reconciliations, while the Senior Treasury Accountant obtains and uploads bank statements, and the Treasury Supervisor approves/reviews the reconciliations. This segregation of duties ensures that no single individual has control over all aspects of the financial transaction process, which helps in preventing errors and fraud.
The Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards)
"Auditing and Assurance Services" by Alvin A. Arens, Randal J. Elder, and Mark S. Beasley

Comprehensive and Detailed Explanation:
To evaluate the project manager's effectiveness at controlling costs, the auditor should verify whether payments are properly authorized, valid, and consistent with agreements. The most direct test is to track a sample of project payments (B) from accounts payable back to contracts and authorizations. This demonstrates whether project expenditures were controlled and aligned with agreements. Bank reconciliations (A) are unrelated to project-level cost control. Validating feasibility model assumptions (C) relates to project planning, not ongoing cost control. Checking budget approval timing (D) relates to compliance but not cost management effectiveness. Therefore, Option B best aligns with the engagement objective.

Internal auditors must corroborate employee testimonials with tangible evidence to ensure the reliability and validity of the findings. Relying solely on testimonials without supporting evidence can lead to inaccurate conclusions. Standard 2310 - Identifying Information of the International Standards for the Professional Practice of Internal Auditing emphasizes that sufficient, reliable, relevant, and useful information should be obtained to achieve the engagement's objectives.
Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2310 - Identifying Information.