Concurrent audit is a part of

Explanation:

• Concurrent audit entails continual verification of a year's worth of transactions by the auditor. 
• Unlike most audits, which are conducted after transactions have occurred, the concurrent audit is conducted while transactions occur which makes it a part of internal audit system. It provides early warning to guarantee that irregularities and lapses are detected quickly.
• The auditor is the one who decides on the verification timeframe. There are no financial statements prepared. 
• Assets and liabilities are only validated when the year-end accounting is completed.

Final Answer:

 Hence, the correct answer is option C: Internal audit system.