The Statement That Best Describes Internal Auditing Is

question 27

Multiple Choice

The statement that best describes internal auditing is:

• A)an activity to reduce risk.
• B)an activity located within an entity, primarily to detect fraud.
• C)an independent and objective assurance activity within an entity.
• D)an accounting function located within an entity.

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Definitions:

Present Intent

Refers to the current intention of a person to engage in a legal act, ensuring that the intent aligns with the execution of the act.

Valid Offer

A valid offer is a clear proposal made by one party to another indicating a willingness to enter into a contract under specified terms, which, if accepted, results in a binding agreement.

Firm Offer

Under the Uniform Commercial Code, a signed, written offer by a merchant containing assurances that it will be held open, and which is not revocable for the time stated in the offer, or for a reasonable time if no such time is stated.

Consideration

In contract law, something of value exchanged between parties that is necessary for a valid contract.