Internal Auditors

question 23

Multiple Choice

Internal auditors

• A) are hired by CPA firms to audit business firms.
• B) are employees of the IRS who evaluate the internal controls of companies filing tax returns.
• C) evaluate the system of internal controls for the companies that employ them.
• D) cannot evaluate the system of internal controls of the company that employs them because they are not independent.

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Definitions:

Economic Relationships

Connections or associations between economic variables that show how changes in one can affect changes in another.

Post Hoc

Short for "post hoc ergo propter hoc," a logical fallacy implying that because one event follows another, the first event was the cause of the second.

Ergo Propter Hoc

A logical fallacy meaning "therefore, because of this," where a cause-and-effect relationship is incorrectly identified based on sequence alone.

Cause And Effect

The relationship between events or things, where one is the result of the other or others.