Which of the following is not an audit objective of a commodity department?
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A. B. C. D.C
The primary purpose of an audit is to assess and evaluate the internal controls of a department or organization and to ensure that they are functioning properly. The audit of a commodity department typically involves examining the department's policies and procedures, as well as its books and records, to ensure that they are in compliance with regulatory requirements and industry best practices.
To achieve this goal, an audit of a commodity department typically has several objectives, including:
A. All customer accounts are opened and maintained in accordance with the rules and regulations of the commodity futures trading commission (CFTC) and the various commodity exchanges.
This objective aims to ensure that the department's customer accounts comply with the rules and regulations set forth by the CFTC and other commodity exchanges. This includes verifying that customers have provided all the necessary information required to open an account, such as identification, contact information, and other regulatory requirements.
B. Adequate control exist to ensure the accuracy and propriety of information contained in regulatory reports, such as the commodity futures trading commission form 1-FR, and the focus report.
This objective focuses on verifying that the department has adequate controls in place to ensure that the information contained in regulatory reports, such as the commodity futures trading commission form 1-FR and the focus report, is accurate and appropriate. This includes verifying that the department has appropriate policies and procedures in place for collecting, verifying, and reporting data to regulatory agencies.
C. Verify the accuracy and reporting (inventory reports, fail reports, again reports, and profit and loss reports).
This objective aims to ensure that the department's internal reporting systems are accurate and reliable. This includes verifying that the department has appropriate procedures in place for tracking inventory, monitoring fails, and reporting profits and losses accurately.
D. None of these.
Option D is not an audit objective of a commodity department, as all of the objectives listed in options A, B, and C are relevant to an audit of a commodity department.