Internal Auditors

question 57

Multiple Choice

Internal auditors

• A) are hired by independent accounting firms to audit companies.
• B) are employees of the government 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 companies that employ them because they are not independent.

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Definitions:

Productivity

A measure of the efficiency of production that is often quantified as the ratio of output to inputs used in the production process, such as labor and capital.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate in relation to each other.

Labor Productivity

Output per unit of labor; measured as real GDP divided by the hours of labor employed to produce that output.

Production Possibilities Frontier (PPF)

A curve showing alternative combinations of goods that can be produced when available resources are used efficiently; a boundary line between inefficient and unattainable combinations.