Independent Internal Reviews Should Be Done

question 35

Multiple Choice

Independent internal reviews should be done

• A)at the end of each accounting period.
• B)at the end of each month.
• C)periodically on a surprise basis.
• D)by the external auditor.

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Definitions:

Days' Sales

A measure often used in the context of 'Days' Sales in Inventory' which indicates the average number of days it takes for a company to sell its inventory.

Raw Materials Inventory

Consists of the basic materials and components required to manufacture goods.

Production

The process of creating, manufacturing, or enhancing products or services for sale.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency in managing stock levels.