The Internal Auditor's Opinion in Terms of Due Professional Care

question 31

Multiple Choice

The internal auditor's opinion in terms of due professional care should be:

• A) Limited to the effectiveness of internal controls.
• B) Expressed only when consensus with top management has been achieved.
• C) Based on experience and free of all bias.
• D) Based on sufficient factual evidence.

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Definitions:

Stock

Stock represents ownership shares in a corporation, giving holders a claim on part of the company's assets and earnings.

Bond Payable

A recorded obligation indicating a company must repay a borrowed sum at a set interest rate by a specified date.

Accounts Payable

Liabilities or amounts owed by a business to its creditors for goods and services that have been received but not yet paid for.

Accounts Receivable

Financial obligations of customers to a firm for items or services rendered but not yet compensated.