An Organization Receives the Most Value from an Internal Audit

question 112

Multiple Choice

An organization receives the most value from an internal audit activity's enterprise-wide risk assessment when the auditor:

• A) Focuses primarily on enterprise-level risks.
• B) Considers activities at all levels of the organization.
• C) Reviews special projects and new initiatives.
• D) Validates supporting financial and operational data.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds, reducing the amount of outstanding stock on the market.

Cash Dividend

Cash payments made by corporations to their owners from profits earned.

Authorized Shares

The highest quantity of shares that a company can legally distribute, as stated in its charter.

Noncumulative

Pertaining to preferred stock dividends, where dividends not paid in one period do not accumulate and are not required to be paid in future periods.