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

question 97

Multiple Choice

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

• A) Risk assessment
• B) Control procedures
• C) Monitoring
• D) Information and communication

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Definitions:

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity, investment, and operating activities.

Investing Section

Part of a company's cash flow statement that shows the cash spent on or generated from investment activities, such as buying or selling assets.

Bonds

Fixed income investments representing a loan made by an investor to a borrower, typically corporate or governmental.