Internal Auditor Independence Would Not Be Impaired If the Auditor

question 21

Multiple Choice

Internal auditor independence would not be impaired if the auditor:

• A) made management decisions relating to financial activities.
• B) assumes operating responsibilities.
• C) reports directly to the controller.
• D) reports directly to the treasurer.
• E) makes recommendations based on audit findings.

---

Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of goods.

Direct Labor

The wages and related expenses for employees who are directly involved in the production of goods or services.

Overhead Cost

Rephrased: Expenditures related to the business's general operations, not directly linked to any specific product or service.

Direct Materials

Raw materials that are directly used in the production of a product and can be easily attributed to that product.