Which of the Following Is True of an Internal Auditor

question 20

Multiple Choice

Which of the following is true of an internal auditor?

• A) The responsibilities of an internal auditor extend beyond the processing functions of a transactional accountant.
• B) A qualified opinion from the internal auditor adds credibility to the organization and its financial statements.
• C) The internal auditor issues reports that are used by the stakeholders and other users to understand the financial statements of an organization.
• D) The budgets, cash flow statements, income statement, and balance sheet of an organization is prepared by the internal auditor.

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Definitions:

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid or charged.

Semiannual Interest

Interest that is paid or calculated twice a year on a loan or investment.

Available-for-sale Securities

Available-for-sale securities are financial assets that are neither classified as held-to-maturity securities nor trading securities, and are recorded at fair market value on the balance sheet.

Fair Value

The estimated market value of an asset or liability, reflecting the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction.