Which of the Following Is a Responsibility of the Internal

question 345

Multiple Choice

Which of the following is a responsibility of the internal auditor once a fraud investigation has been concluded?

• A) Ascertain the extent to which fraud has been perpetrated.
• B) Notify the appropriate regulatory authorities regarding the outcome of the investigation.
• C) Determine if controls need to be implemented or strengthened to reduce future vulnerability.
• D) Implement controls to prevent future occurrences.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes (EBIT) divided by interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected in its income statement.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Net Profit Margin Percentage

A financial metric that shows the percentage of revenue that remains as profit after all expenses have been subtracted from total sales.