A Periodic Review by Internal Auditors That Stresses the Evaluation

question 37

Multiple Choice

A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department's procedures is called a (an) :

• A)Operational audit
• B)Financial audit
• C)Management-by-exception audit
• D)Audit by exception

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Definitions:

Unearned Rent Revenue

Income received by a company for rent that has been paid in advance by tenants but not yet earned, considered a liability until the rental period occurs.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of assets, provision of services, or other forms of economic benefit.

Revenue

The cumulative revenue produced from the sale of goods or provision of services directly linked to the main business activities of a company.

Unearned Rent Revenue

Income received by a property owner for rent that has not yet been earned because the time period the rent covers has not yet passed.