Which of the Following Enhances the Independence of the Internal

question 154

Multiple Choice

Which of the following enhances the independence of the internal audit activity?

• A) The chief audit executive (CAE) approves the annual internal audit plan.
• B) The CAE administratively reports to the board.
• C) The audit committee approves the CAE's annual salary increase.
• D) The chief executive officer approves the internal audit charter.

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Definitions:

National Income

The total monetary value of all goods and services produced by a country's economy over a specific time period, excluding income earned abroad.

GDP

Gross Domestic Product, abbreviated as GDP, embodies the total market and monetary worth of all products and services that are finalized within a country's borders throughout a defined period.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy.

GDP Deflator

A measure of the price level of all newly produced, domestic, final goods and services in an economy, used to adjust GDP for inflation.