The Internal Audit Function Is Only Effective When

question 95

Multiple Choice

The internal audit function is only effective when

• A) control tasks are properly performed.
• B) the results of an internal audit are reported to senior management and/or the company's owners.
• C) independent checks of performance are carried out on a regular basis.
• D) reports are filed with the CICA.

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Definitions:

Period Costs

Expenses directly tied to a specific time period, such as rent, utilities, and administrative salaries, and not directly to the production process.

Units Sold

The number of individual items that have been sold over a specified period.

Period Costs

Costs that are not directly related to the manufacturing process and are charged as expenses in the period they arise.

Units Sold

The total quantity of a company's product that was sold during a specified period.