When a Firm Uses Internal Auditors, It Is Adhering to Which

question 17

Multiple Choice

When a firm uses internal auditors, it is adhering to which of the following internal control elements?

• A) risk assessment
• B) monitoring
• C) proofs and security measures
• D) information and communication

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Definitions:

Purchases On Account

The acquisition of goods or services with an agreement to pay for them at a later date, typically through the use of credit.

Accounts Receivable Subsidiary Ledger

A ledger containing detailed information on transactions related to individual customers to whom sales on credit have been made.

Collections From Customers

The process and activities involved in gathering all payments owed by customers for goods and services sold to them.

Adjustment For Expired Insurance

This is an accounting entry made to reflect the decrease in value of an insurance premium, representing the portion of the insurance cost that has been utilized over time.