You Are Requested by Top Management to Establish an Audit

question 96

Multiple Choice

You are requested by top management to establish an audit program of the quality systems in each branch plant of your firm. Which of the following schemes would you use in selecting the audit team to optimize continuity, direction, availability, and technology transfer?

• A) A full time audit staff.
• B) All volunteer audit staff.
• C) Hybrid audit staff (a proportion of answers a and b above).
• D) An outside consulting firm.

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Definitions:

Maturity

The date on which the principal amount of a bond, loan, or other financial instrument is due to be paid back to the investors.

Interest Rates

The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal.

Premium

The amount by which the price of a financial instrument or insurance policy exceeds its face value or the cost above the normal price.