According to IIA Guidance, Which of the Following Would Not

question 262

Multiple Choice

According to IIA guidance, which of the following would not be a consideration for the internal audit activity (IAA) when determining the need to follow-up on recommendations?

• A) Degree of effort and cost needed to correct the reported condition.
• B) Complexity of the corrective action.
• C) Impact that may result should the corrective action fail.
• D) Amount of resources required to conduct the follow-up activities.

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Definitions:

Investment

Designating financial means with the prospect of attaining profit or income.

Capital Intensity Ratio

A financial metric that compares a company's total assets to its sales revenue, used to evaluate how much capital is needed to generate sales.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, as reported on the balance sheet.

Capacity Utilization

The percentage of a firm or industry's total production capacity that is actually being used over a specific period.