In Order to Use "Conducted in Accordance with the International

question 299

Multiple Choice

In order to use "Conducted in accordance with the International Standards for the Professional Practice of Internal Auditing, " an internal audit activity must:

• A) Satisfy all requirements of the International Professional Practices Framework during each internal audit engagement.
• B) Complete an external assessment of quality assurance to demonstrate compliance with the Standards.
• C) Establish a continuous quality assurance and improvement program.
• D) Have its charter reviewed and approved by management and the board.

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Definitions:

Investment Turnover

The ratio of sales to invested assets.

Profit Margin

A financial metric, calculated as net income divided by revenue, that indicates the percentage of sales that exceeds the costs of goods sold.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Sales to Investment

A ratio that measures the efficiency of a firm in generating sales from its investments in assets.